A Promising Start to 2025 for Crypto ETPs
The year 2025 has started on a positive note for cryptocurrency investment products, with global crypto exchange-traded products (ETPs) witnessing $585 million of inflows in the first three days of the year. This early momentum suggests a promising start to the new year, despite the heavy selling that characterized the last two trading days of 2024.
A Look Back at 2024: Record-Breaking Inflows for Crypto ETFs
Despite the late-year dip, 2024 closed as a record-breaking year for crypto ETFs. The total inflows for the year reached $44.2 billion, representing a staggering 320% increase from the previous record of $10.5 billion set in 2021. This remarkable growth is attributed to several factors, including the historic launch of spot Bitcoin exchange-traded funds (ETF) in the United States in January 2024.
The Dominance of Bitcoin ETFs
Bitcoin-based ETPs dominated the inflows in 2024, accounting for a significant portion of the total assets under management (AUM). Specifically, BTC ETPs saw $38 billion in inflows, which represents 29% of the total $130 billion AUM. This dominance is a testament to the enduring popularity and trust that investors have placed in Bitcoin as a store of value.
The Resurgence of Ether-Based ETPs
Ether-based ETPs also experienced a resurgence towards the end of 2024, leading to full-year inflows of $4.8 billion. This represents 26% of the total $18.6 billion ETH AUM. While still lagging behind Bitcoin’s dominance, Ether has maintained its position as a popular choice among investors.
Total AUM for Crypto ETPs in 2024
The growth in crypto ETF inflows was not limited to Bitcoin and Ether. Other assets, such as XRP, saw significant inflows of $438 million, while multi-asset ETPs attracted $257 million. As a result, the total AUM for all crypto ETPs reached $160.6 billion in 2024.
Country-Specific Inflows and Outflows
While the US was the largest buyer of crypto ETPs, with $44.5 billion in inflows, Canada emerged as the biggest seller in 2024. Canadian crypto ETPs saw $707 million in outflows last year. Countries like Sweden and Germany also posted significant outflows of $682 million and $328 million, respectively.
Regional Flows Over the Past Four Years
The following table provides a breakdown of regional inflows and outflows over the past four years (in millions of US dollars):
| Region | 2021 Inflow/Outflow | 2022 Inflow/Outflow | 2023 Inflow/Outflow | 2024 Inflow/Outflow |
| — | — | — | — | — |
| United States | $14,133 / -$7,143 | $15,343 / -$13,143 | $17,043 / -$21,643 | $44,543 / +$3,243 |
| Canada | -$5,943 / $1,643 | -$6,743 / -$8,243 | -$10,143 / -$12,643 | -$707,000 / +$2,343 |
| Switzerland | $4,333 / -$2,143 | $5,543 / -$3,643 | $6,443 / -$5,143 | $630,000 / +$1,243 |
| Brazil | $1,843 / -$943 | $2,343 / -$1,643 | $3,143 / -$2,343 | $234,000 / +$1,543 |
| Sweden | -$2,743 / $4,343 | -$3,143 / -$5,243 | -$4,443 / -$6,643 | -$682,000 / +$2,143 |
| Germany | -$1,143 / $2,443 | -$1,543 / -$3,243 | -$2,343 / -$4,643 | -$328,000 / +$1,943 |
Conclusion
The record-breaking year for crypto ETFs in 2024 was a testament to the growing adoption and trust that investors have placed in cryptocurrency investment products. The early momentum in 2025 suggests a promising start to the new year, with Bitcoin dominating the inflows once again. However, it is essential for investors to remain vigilant and adapt to changing market conditions.
Recommendations
- Diversify Your Portfolio: With the growing popularity of crypto ETFs, it’s essential to maintain a diversified portfolio that includes various assets.
- Monitor Market Trends: Stay up-to-date with the latest market trends and adjust your investment strategy accordingly.
- Set Realistic Expectations: Understand that cryptocurrency investments carry risks and set realistic expectations for returns.
By following these recommendations, investors can make informed decisions and navigate the complex world of cryptocurrency investment products.
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