Cryptocurrency-related products inflows reached $585 million in the first three trading days of 2025
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Crypto.com Inflows Reach $585 Million in First 3 Trading Days of 2025, But See $75 Million Net Outflow for the Week
The crypto industry saw strong inflows of $585 million in the first 3 trading days of 2025, but experienced a $75 million net outflow for the entire week, including the last 2 trading days of 2024.
This follows a record-breaking year in 2024, with global crypto inflows reaching $44.2 billion, more than quadrupling the $10.5 billion record set in 2021.
Bitcoin Dominance and the Role of ETFs
The latest CoinShares report attributes this to a shift in investor focus towards US-based products. In particular, Bitcoin and Ethereum spot-based ETFs (Exchange Traded Funds) have been attracting institutional investor interest.
"The conclusion of 2024 was a record $44.2 billion in inflows globally, nearly quadrupling the $10.5 billion record set in 2021. With the entry of US spot-based ETFs, inflows reached $44.4 billion, or 100%," the report read.
Bitcoin alone saw $38 billion in inflows in 2024, accounting for a maximum of 29% of total assets under management, an impressive performance driven by Bitcoin ETFs.
These financial products have played a crucial role in legitimizing Bitcoin as an investable asset, providing regulated access for institutional and individual investors. According to BeInCrypto, Bitcoin ETFs are expected to become even more dominant in 2025, as the demand for safe and regulated crypto investment vehicles continues to grow, potentially driving even greater inflows.
Altcoins Likely to Remain Overlooked by Traditional Finance in 2025
The report also highlights that Ethereum experienced a significant resurgence towards the end of 2024, recording $4.8 billion in inflows at the end of the year. This accounted for 26% of assets under management, a 2.4-fold increase from 2021 and a 60-fold growth from 2023.
As with Bitcoin, the popularity of Ethereum ETFs has been a driving force behind this growth. According to BeInCrypto, Ethereum ETFs set a new record in December, with institutional interest exceeding $2 billion.
Excluding Bitcoin and Ethereum, altcoins saw relatively modest inflows of $813 million in 2024, accounting for only 18% of assets under management. This suggests that while interest in alternative digital assets persists, it remains dwarfed by the dominant positions of Bitcoin and Ethereum.
Investors appear to be prioritizing proven assets with strong infrastructure. Reflecting this, BlackRock recently indicated that it would focus on Bitcoin and Ethereum, delaying plans for altcoin ETFs.
"We're just scratching the surface with Bitcoin, especially Ethereum. Only a tiny fraction of our clients own IBIT and ETHA. So we're focusing there rather than launching new altcoin ETFs," said Jay Jacobs, head of ETF research at BlackRock, as reported.
Nevertheless, the continued growth of crypto ETFs is expected to play a crucial role in driving the market. Industry experts predict that these financial products will not only attract new capital, but also strengthen market stability by providing regulated entry points for institutional investors.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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