Bitcoin and cryptocurrency Exchange-Traded Products (ETPs) have started off 2021 on a high note, with inflows totaling approximately $585 million in just the first few days. As per a report by CoinShares, penned by James Butterfill, this trend suggests a strong continuation of the performance seen in these assets throughout the previous year. Analysts concur that this early surge in crypto ETPs is indicative of a promising year ahead for these digital assets.
According to a recent report from CoinShares, crypto Exchange-Traded Products (ETPs) experienced over $44 billion in outflows during 2024. Among these digital assets, Bitcoin was the most actively traded, attracting approximately $38 billion in inflows, which accounted for almost 30% of all Assets Under Management (AUM). Ethereum also gained traction towards the end of the year, with a net inflow exceeding $4.8 billion.
Bitcoin ETPs Lead The Pack
As an analyst, I’d like to bring to your attention some intriguing insights I came across in a recent report published by CoinShare, which they disseminated via their official site and social media platforms. The report revealed that among all the crypto-based Exchange Traded Products (ETPs) globally, Bitcoin ETPs have garnered a staggering $38 billion as Assets Under Management (AUM), making them the preferred digital investment product in this sector.
2024 saw US$44bn inflows in to crypto ETPs, 2025 off to a good start with US$585m inflows so far
— James Butterfill (@jbutterfill) January 6, 2025
In 2024, Ethereum Exchange-Traded Products (ETPs) ranked second in terms of inflows, amassing approximately $4.8 billion. This accounted for about 26% of the total Assets Under Management (AUM) of all global ETPs related to Ethereum. Compared to the inflows from the previous year, the increase was more than double, and it was a staggering 60 times larger compared to the inflows in 2023.
In the year 2024, Ethereum trails Solana in terms of inflows with a minimal $69 million, accounting for just 4% of all assets under management. Compared to Bitcoin and Ethereum, Solana’s figures are relatively small; however, it outperforms all other alternative coins in this period.
Approval Of Spot ETFs Helps Increase Inflows
2024 witnessed unprecedented investments with a whopping four times more inflow compared to the significant investments seen in 2021 during the bull market. Specifically, cryptocurrency investment products raked in over $10 billion in net inflows in 2021, but in 2024, this figure was surpassed.
As an analyst, I’ve observed a significant boost in global crypto investment products, a trend that can be directly linked to the US Securities and Exchange Commission’s approval of spot Bitcoin ETFs in January 2024. This decision paved the way for 11 such Bitcoin ETFs, followed by eight similar ETFs for Ether on May 22nd.
Based on the latest figures, it appears that Bitcoin Spot Exchange-Traded Funds (ETFs) are primarily driving the surge of investments in Bitcoin-related sectors. Moreover, Butterfill anticipates that these ETFs could significantly alter the pattern of inflows in crypto investment in the time to come.
Better Days Ahead For US Bitcoin Spot ETPs
Beyond CoinShares, Galaxy Digital likewise painted an optimistic outlook for the crypto investment sector in their recent report, published on December 31st, 2024. In this document, they confidently projected that the US spot ETPs market would witness substantial growth in 2025. Remarkably, their forecast suggests that this specific area could amass $250 billion in assets under management (AUM) by the end of this year.
Currently, Alex Thorne from Firmwide Research notes that Bitcoin Exchange-Traded Products (ETPs) are rapidly approaching the total asset value managed by Gold ETPs.
Thorne stated furthermore that Bitcoin is expected to remain among the top-performing investments when considering risk, while other experts predict a rise in Ether’s exchange-traded products (ETPs) this year. The Ethereum network stands to gain under a Trump administration and positive regulatory developments.
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2025-01-08 16:34