This marks a monumental leap from the previous annual high of US$10.5 billion in 2021, underlining heightened institutional interest in digital assets.
Bitcoin investment products dominated the inflows, contributing US$38 billion—29% of Bitcoin’s all-time assets under management. US spot Bitcoin ETFs, a key driver, accounted for US$35 billion of this total.
Ethereum funds rebounded strongly, ending the year with US$4.8 billion in net inflows, bolstered by US spot Ether ETFs, which alone drew US$2.6 billion. XRP and Solana funds also saw significant investments, attracting US$438 million and US$69 million, respectively.
While short-Bitcoin products saw a slight dip from 2023, they still managed US$108 million in inflows, indicating interest in bearish strategies even amid rising prices. The approval and launch of the first US spot Bitcoin and Ethereum ETFs were pivotal, collectively pulling in US$44.4 million.
However, not all markets fared equally. Canadian and Swedish crypto funds experienced annual outflows of US$707 million and US$682 million, respectively, as investors gravitated toward US-based products or took profits. Despite these regional outflows, the global crypto fund industry remains robust.
Momentum has carried into 2025, with US spot Bitcoin ETFs already recording US$585 million in net inflows this year. January 3 alone saw inflows of US$908 million, signaling bullish sentiment. Experts predict continued growth, with advancements in ETF mechanisms and the potential launch of Solana-based ETFs on the horizon.
Institutional demand is expected to surge further in 2025. Analysts project sovereign wealth funds, pension funds, and other institutional players could generate “demand shocks” for Bitcoin. Research by Bernstein forecasts BTC ETF inflows to exceed US$70 billion by year-end, doubling 2024’s record-breaking figures and setting the stage for another transformative year for digital asset investments.
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