The new year has brought optimism to the cryptocurrency market, with global crypto exchange-traded products (ETPs) posting significant inflows in the first three days of January. According to a report by CoinShares, the leading cryptocurrency investment firm, global crypto ETPs saw $585 million in inflows from January 1-3, marking a promising start to the year.
A Record-Breaking Year for Crypto ETFs in 2024
Despite the strong start in 2025, the late-year dip in December 2024 meant that crypto ETPs experienced net outflows of $75 million for the full previous trading week. However, this setback did not deter investors from flocking to cryptocurrency investment products, which recorded a record-breaking year in 2024.
The year 2024 saw an unprecedented influx of funds into crypto ETFs, with a staggering $44.2 billion in inflows – a whopping 320% increase from the previous record of $10.5 billion set in 2021. This remarkable growth can be attributed to several factors, including the historic launch of spot Bitcoin exchange-traded funds (ETF) in the United States in January 2024.
The Rise of Spot Bitcoin ETFs
According to James Butterfill, CoinShares’ head of research, the introduction of spot Bitcoin ETFs was a major contributor to the surge in inflows. "The launch of spot Bitcoin ETFs in the US marked a significant turning point for the industry," Butterfill noted. "These products allow investors to gain exposure to Bitcoin without having to hold the underlying asset, making it more accessible and attractive to institutional investors."
Bitcoin Dominates ETF Inflows
Bitcoin was the clear winner among cryptocurrency assets in 2024, accounting for a significant portion of ETF inflows. With $38 billion in inflows, Bitcoin dominated the market share, representing 29% of all $130 billion in total assets under management (AUM).
Ether and Other Cryptocurrencies See Resurgence
While Bitcoin was the clear leader, other cryptocurrencies like Ether also saw a resurgence in late 2024. With $4.8 billion in inflows, Ether-based ETPs brought full-year inflows to 26% of all $18.6 billion in ETH AUM.
Total Assets Under Management (AUM) Reach Record High
The growth in crypto ETF inflows was mirrored by a significant increase in total assets under management (AUM). According to CoinShares data, the total AUM for all crypto ETPs reached an impressive $160.6 billion in 2024.
Country-Specific Inflows and Outflows
While the US emerged as the largest buyer of crypto ETPs, with $44.5 billion in inflows, Canada was the biggest seller, with $707 million in outflows. Countries like Sweden and Germany also posted significant outflows of $682 million and $328 million, respectively.
Canada’s Crypto ETP Outflows
CoinShares data revealed that Canadian crypto ETPs saw substantial outflows in 2024. In contrast, countries like Switzerland and Brazil saw inflows of $630 million and $234 million, respectively.
Crypto ETF Outlook for 2025
While the early start to 2025 has been promising, investors should remain cautious and monitor market trends closely. As the cryptocurrency market continues to evolve, investors must be prepared for potential ups and downs.
Key Takeaways:
- Global crypto ETPs saw $585 million in inflows in the first three days of January.
- 2024 closed as a record-breaking year for crypto ETFs, with $44.2 billion in inflows – a 320% increase from the previous record.
- Bitcoin dominated ETF inflows, accounting for 29% of all $130 billion in total assets under management (AUM).
- Ether-based ETPs saw a resurgence in late 2024, bringing full-year inflows to 26% of all $18.6 billion in ETH AUM.
- The US emerged as the largest buyer of crypto ETPs, while Canada was the biggest seller.
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