Key Points
- Global crypto funds attracted a record $44.2 billion in net inflows in 2024, largely driven by Bitcoin and Ethereum.
- Despite some outflows from Canadian and Swedish funds, the crypto industry’s momentum remains strong with a positive outlook for 2025.
In 2024, financial powerhouses like BlackRock, Fidelity, and Grayscale saw their global crypto funds reach a remarkable milestone, with net inflows amounting to $44.2 billion. This record-breaking figure surpassed the previous year’s $10.5 billion, indicating a significant increase in institutional interest in digital assets.
Investment products based on Bitcoin were the primary contributors, accounting for $38 billion of the total inflows. This represents 29% of all Bitcoin assets under management. A significant portion of these inflows came from US spot Bitcoin ETFs, which attracted $35 billion in net inflow over the year.
Ethereum and Other Cryptocurrencies
Despite previous underperformance, Ethereum-based products made a comeback in late 2024, ending the year with $4.8 billion in net inflows. US spot Ether ETFs were particularly successful, accumulating $2.6 billion in net inflows over the year. Other cryptocurrencies, such as XRP and SOL, also received substantial investments, with inflows of $438 million and $69 million respectively.
Short-Bitcoin products attracted $108 million, showing that even bearish strategies found their place in a year of rising prices. The launch of the first U.S. spot Bitcoin and Ethereum ETFs significantly contributed to this growth, pulling in a combined $44.4 million in inflows.
However, crypto funds based in Canada and Sweden experienced annual outflows of $707 million and $682 million, respectively, as investors moved towards U.S.-based products or took profits. Despite these outflows, the industry’s overall momentum remains strong.
Outlook for Crypto Funds
The year 2025 has started strongly for digital asset investment products. For example, US spot Bitcoin ETFs have seen $585 million in net inflows since the beginning of the year. Notably, January 3 alone saw $908 million in inflows, suggesting a bullish sentiment that could shape the rest of the year.
Industry experts anticipate further progress for crypto funds and ETFs. ETF analyst Nate Geraci predicted enhancements in ETF mechanisms, the approval of Solana-based ETFs, and the introduction of Bitcoin-denominated ETFs tied to reverse-cap-weighted S&P 500 indices.
Analysts are also predicting significant institutional demand for cryptocurrencies in 2025. A report by Sygnum Bank suggested that increased demand from sovereign wealth funds, pension funds, and other major institutional investors could create “demand shocks,” pushing Bitcoin prices to new highs. Research firm Bernstein suggested that Bitcoin ETF inflows could exceed $70 billion by the end of the year, doubling the $35 billion recorded in 2024.
