Global crypto funds hit a record $44.2 billion in net inflows in 2024, with Bitcoin-based products contributing $38 billion.
Global crypto funds managed by financial giants like BlackRock, Fidelity, and Grayscale achieved an extraordinary milestone in 2024, with $44.2 billion in net inflows, according to CoinShares. This figure shattered the previous annual record of $10.5 billion set in 2021, reflecting a massive surge in institutional interest in digital assets.
Bitcoin-based investment products led the charge, contributing $38 billion of the total inflows, equivalent to 29% of all-time Bitcoin assets under management. A major portion of this came from US spot Bitcoin ETFs, which attracted $35 billion in net inflow over the year.
Ethereum-based products, despite past underperformance, staged a comeback in late 2024, ending the year with $4.8 billion in net inflows. In particular, US spot Ether ETFs accumulated $2.6 billion in net inflows over the past year. XRP $2.61 24h volatility: 3.7% Market cap: $156.33 B Vol. 24h: $9.03 B and SOL $206.0 24h volatility: 6.3% Market cap: $112.56 B Vol. 24h: $11.88 B funds also saw notable investments, with $438 million and $69 million in inflows, respectively.
Short-Bitcoin products, while slightly down from 2023 levels, managed to attract $108 million, demonstrating that even bearish strategies found their place in a year marked by rising prices. Remarkably, the approval and launch of the first U.S. spot Bitcoin and Ethereum ETFs contributed significantly to this growth, pulling in a combined $44.4 million in inflows.
However, Canadian and Swedish crypto funds saw annual outflows of $707 million and $682 million, respectively, as investors migrated toward U.S.-based products or capitalized on gains. Despite this, the industry’s overall momentum remains strong.
What’s Next for Crypto Funds?
Interestingly, digital asset investment products are off to a strong start in 2025. For instance, US spot Bitcoin ETFs saw $585 million in net inflows since year-start. Notably, January 3 alone saw $908 million in inflows, signaling a bullish sentiment that could define the year ahead.
As the year starts, industry experts foresee even greater strides for crypto funds and ETFs. Last week, renowned ETF analyst Nate Geraci outlined his top predictions, expecting further enhancements in ETF mechanisms, such as in-kind creation and redemption for Bitcoin and Ethereum ETFs, alongside the approval of Solana-based ETFs. Geraci also expects the introduction of Bitcoin-denominated ETFs tied to reverse-cap-weighted S&P 500 indices within the next two months.
Prediction…
Reverse cap weighted S&P 500 ETF denominated in bitcoin.
We will see this filing in next 2mos.
— Nate Geraci (@NateGeraci) January 4, 2025
Analysts are also forecasting major institutional demand for cryptocurrencies in 2025. A December report by Sygnum Bank stated that the potential impact of rising demand from sovereign wealth funds, pension funds, and other major institutional investors could create “demand shocks,” driving Bitcoin prices to new heights. Research firm Bernstein recently suggested that BTC $115 204 24h volatility: 1.1% Market cap: $2.30 T Vol. 24h: $80.55 B ETF inflows could surpass $70 billion by the end of the year—double the $35 billion recorded in 2024.
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