The cryptocurrency market experienced a substantial expansion in the first quarter, as detailed in a recent CoinGecko report. This period saw the sector’s capitalization increase by a remarkable 64.5%, achieving a new high of $2.9 trillion by March. The total growth of $1.1 trillion notably surpassed the previous quarter’s rise of $0.61 trillion.
Growth Factors and Market Dynamics
Significant capital inflows marked the period, particularly into the spot Bitcoin ETFs following their approval on January 10. The surge in investments began to escalate in late January, continuing robustly until mid-March, where it hit a provisional peak. During this phase, assets under management for U.S. Spot Bitcoin ETFs soared to $55.1 billion.
Grayscale Bitcoin Trust ETF remains the dominant player, yet competitors like the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund are quickly closing in. Over the quarter, Bitcoin itself climbed 68.8%, reaching its highest value ever.
Despite a slowdown in capital inflows to spot Bitcoin ETFs by March end, the overall fund performance remained positive. Since January, these funds have drawn more than $12 billion in new investments. Prior analysis by Binance Research also highlighted a 16.3% increase in market capitalization within a single month, underscoring the ongoing positive trend in the crypto sector.