Taking a look at the best performing investments in 2024, there have been an interesting array, from Cocoa and Coffee to Crypto and from Gold to Germanium and from freight to eggs.
The best performing Commodity for 2024 was the humble Cocoa, with an impressive 181% growth on Cocoa futures in the year. The product started 2024 off at a low price of $4361.60 and is currently selling for $11878.80. The Arabica coffee bean futures, also had a great year moving up over 71% in value.
Gold also had a remarkable year in 2024, starting the year at just over $2000 per once and hitting highs of $2780 at the end of October, and while prices have moderated a little since, it is still up over 30% for 2024.
Crypto currencies however have taken the winners ribbon for growth in value in 2024 with several crypto currencies such as Solana and Stellar, increasing in value by over 200% in the year. Bitcoin is as of today (17 Dec) up over 152% and has climbed over 11% in the last week alone.
ETFs and the continued rise of digital assets in traditional portfolios
2024 also marked a shift in the investment landscape, with institutional adoption of cryptocurrency, with major financial institutions like JPMorgan Chase, Goldman Sachs, and others ramping up crypto-related initiatives. Traditional asset managers, who were once skeptical, are now actively integrating digital assets into the mainstream financial ecosystem.
Among the key developments in the crypto surge seen in 2024 was the approval of Bitcoin exchange-traded funds (ETFs) in January. This development making it much easier and more attractive for funds to diversify their activities into cryptocurrency.
Multiple ETFs gained approval from the US Securities and Exchange Commission (SEC), marking the first time such investment products were cleared for launch in the US. Bitcoin ETFs now have assets of approximately $113 billion.
Historically, the Bitcoin halving, has been the catalyst for pushing the asset past previous all-time highs. However, in 2024. Bitcoin defied this trend by surpassing its prior all-time high in March, fueled by the optimism surrounding ETF approval.
Traditionally, the halving event—occurring roughly every four years—reduces the mining reward, cutting the supply of Bitcoin and adding an anti-inflationary effect. While the halving has often sparked a bullish momentum, leading to significant price increases, 2024 saw Bitcoin take a different path.
After the initial surge, the largest digital asset by market cap experienced a relatively flat performance for much of the year, only to break out again in November.
Regulation increases legitimacy
Regulators globally have made significant strides in establishing frameworks that foster the responsible growth of the crypto industry. In South Africa, crypto asset service providers (CASPs) like Luno were officially recognized as financial service providers in 2024.
The Trump and Corporate Adoption Effect
President-elect Donald Trump made crypto an important element of his campaign strategy, pledging to create a “strategic bitcoin reserve” and to position the US as the “crypto capital of the planet.”
Since his election, Trump has seemingly kept his pledges by nominating pro-crypto figures to several key federal roles, fueling optimism among crypto supporters. Most impactful of all, Trump has nominated Paul Atkins to chair the Securities and Exchange Commission. Atkins, who was SEC commissioner between 2002 and 2008, is considered supportive of the cryptocurrency industry and has been a member and co-chair of the Chamber of Digital Commerce’s Token Alliance, a blockchain trade association, since 2017.
Major Corporate companies have also started adopting Bitcion and othe crupto-currencies as asset class holdings with several making this central to their business growth strategies and this has also driven the prices for Bitcoin and other crypto currencies up in 2024.
Memecoins finding their place
Memecoins arguably claimed the headlines in the crypto landscape in 2024, with originals like Dogecoin more than tripling in value throughout the year (with support by influential people like Elon Musk). Shiba Inu also saw substantial growth.
The coming year could bring further growth and adoption in this market if interest continues to rise at the same trajectory it did in 2024. It is, however, as with any digital asset, important to do your research before investing and only invest what you can afford to lose.
