Crypto ETPs See Strong Start to 2025 After Record-Breaking 2024
Crypto ETPs (exchange-traded products) have kicked off 2025 with impressive momentum, recording $585 million in inflows during the first three trading days of the year.
The data, released by crypto investment firm CoinShares on Jan. 6, signals a promising start following a record-breaking 2024 for crypto ETFs.
Late-Year Turbulence Fails to Dampen 2024’s Record
Despite significant outflows in the final trading week of 2024—amounting to $75 million—the year closed with $44.2 billion in crypto ETP inflows. This marks a staggering 320% increase from the previous record of $10.5 billion set in 2021.
The historic launch of spot Bitcoin ETFs in the United States in January 2024 played a pivotal role in driving the inflows. CoinShares’ head of research, James Butterfill, attributed much of the year’s success to this milestone, bringing attention to the growing institutional interest in crypto investment products.
Bitcoin Leads the Way
Bitcoin ETPs dominated 2024, attracting $38 billion in inflows and representing 29% of Bitcoin’s $130 billion in total assets under management (AUM). Ethereum-based products also experienced a resurgence, particularly in late 2024, ending the year with $4.8 billion in inflows, accounting for 26% of Ethereum’s $18.6 billion AUM.
Smaller but noteworthy contributions came from XRP and multi-asset ETPs, which garnered $438 million and $257 million in inflows, respectively. Overall, the total AUM for all crypto ETPs reached $160.6 billion by the close of 2024.
Regional Dynamics: The US Dominates, Canada Lags
The United States emerged as the largest buyer of crypto ETPs in 2024, driving $44.5 billion in inflows. In contrast, Canada became the largest seller, with $707 million in outflows. Sweden and Germany also recorded significant outflows of $682 million and $328 million, respectively.
Also read: Decentralized Exchanges Shatter Records with $462 Billion Trading Volume in December
Meanwhile, Switzerland and Brazil posted positive numbers, contributing $630 million and $234 million in inflows, respectively. However, the outflows from Canada, Sweden, and Germany outweighed the gains from these markets, reflecting mixed sentiment across global regions.
What Lies Ahead for 2025
With a robust start to 2025 and the continued growth of institutional-grade crypto products, the stage is set for another significant year. Industry experts anticipate further innovation, including the potential emergence of Solana ETFs, advancements in AI trading, and new regulatory challenges.
The sustained interest in crypto ETPs, particularly those centered around Bitcoin and Ethereum, indicates that digital assets are becoming an increasingly mainstream investment option. As institutional and retail investors alike continue to embrace these products, 2025 could mark another transformative year for the crypto investment landscape.
