Last year, crypto-related products saw a striking $44.2 billion in inflows, a dramatic increase from the previous record of $10.5 billion in 2021. This surge is mainly due to the rise of US spot-based exchange-traded funds (ETFs), particularly Bitcoin ETFs, which alone attracted $38 billion, making up 29% of total assets. Notable ETFs like BlackRock’s IBIT led the Market, marking the most successful ETF launch in a decade. Ethereum also performed well, securing $4.8 billion in inflows, while other altcoins lagged behind. The US dominated global crypto investments, although Canada and Sweden faced outflows. The positive trend continued into early 2025, with significant inflows for Bitcoin investment products.
Crypto Markets Surge with Record Inflows in 2024
Crypto-related products achieved remarkable success last year, with a staggering $44.2 billion in inflows. This figure is almost four times the previous all-time high of $10.5 billion recorded in 2021. This surge was largely driven by the introduction of US spot-based exchange-traded funds (ETFs), which have greatly influenced global investment trends.
Bitcoin ETFs Dominate Investments
Bitcoin led the way, attracting an impressive $38 billion in inflows and representing 29% of total assets under management (AuM). This increase propelled Bitcoin ETFs’ holdings to exceed one million BTC within just a year of their launch. Leading ETFs like BlackRock’s IBIT and Fidelity’s FBTC drew significant investor interest, with IBIT becoming the most successful ETF launch in the last decade, surpassing nearly 3,000 rival funds.
On the flip side, Grayscale’s GBTC experienced significant outflows, with investors withdrawing over $21 billion in search of more affordable options. Despite these outflows, the US Market remains the leader in crypto inflows, capturing almost the entirety of the $44.4 billion total, followed by Switzerland at $630 million. However, outflows from Canada and Sweden, totaling $707 million and $682 million, partially offset these gains, indicating a shift towards US-based products.
Ethereum’s Strong Performance
Ethereum also showed impressive growth, with $4.8 billion in inflows, accounting for 26% of its AuM. Its resurgence, particularly in the later part of the year, significantly improved its standing compared to 2021 and 2023. In contrast, Solana attracted only $69 million, making up just 4% of its AuM.
Looking Ahead: 2025 Trends
As we move into 2025, the momentum continues, with Bitcoin investment products in the US seeing $666 million in inflows within the first two trading days. Notably, January 3 marked a high point with a single-day inflow of $908 million, largely driven by Fidelity, BlackRock, and Ark Invest.
This robust performance across the crypto Market highlights the increasing interest and confidence in digital assets, setting the stage for a potentially transformative year ahead.
Tags: Crypto, Bitcoin, Ethereum, ETF, Digital Assets, Investment Inflows
What is a Bitcoin ETF?
A Bitcoin ETF is an exchange-traded fund that tracks the price of Bitcoin. It allows investors to buy shares without directly owning Bitcoin, making it easier to invest in cryptocurrency.
Why are Bitcoin ETFs gaining popularity in the US?
Bitcoin ETFs are becoming popular because they provide a simple and regulated way for people to invest in Bitcoin. They also offer more security and ease compared to buying Bitcoin directly from exchanges.
What does the recent $903 million inflow mean for the Bitcoin Market?
The $903 million inflow into Bitcoin ETFs shows that more investors are interested in Bitcoin. This increased investment can help drive the price of Bitcoin higher and shows a growing acceptance of cryptocurrency in the Market.
How does the $44.2 billion global gain impact Bitcoin ETFs?
The $44.2 billion global gain indicates that Bitcoin is becoming more valuable and accepted worldwide. This is good news for Bitcoin ETFs, as a rising Market can attract more investors and lead to even higher inflows.
Should I invest in Bitcoin ETFs now?
Investing in Bitcoin ETFs can be a good option, but you should always do your own research. Consider your financial goals, risk tolerance, and the current Market situation before making any investment decisions.