Cryptocurrency exchange-traded products (ETPs) are off to a robust start in 2025, registering $585 million in inflows during the first three days of the year. Despite this strong opening, the late-year selloff in 2024 resulted in $75 million in net outflows for the final trading week, according to a report from crypto investment firm CoinShares.
A Record-Breaking Year for Crypto ETFs
The year 2024 closed with a monumental achievement for crypto ETFs, marking $44.2 billion in total inflows — a staggering 320% increase from the previous record of $10.5 billion in 2021. This historic growth was driven largely by the launch of spot Bitcoin ETFs in the U.S. in January 2024, which dominated the market.
James Butterfill, CoinShares’ head of research, highlighted the pivotal role of U.S. spot Bitcoin ETFs in achieving these record numbers.
Bitcoin Leads the Charge
Bitcoin (BTC) remained the dominant force in the crypto ETP space in 2024, securing $38 billion in inflows, which accounted for 29% of BTC’s total assets under management (AUM) of $130 billion.
Meanwhile, Ethereum (ETH)-based ETPs saw a resurgence toward the end of the year, posting $4.8 billion in inflows, equivalent to 26% of ETH’s total AUM of $18.6 billion.
Other notable inflows included:
- $438 million in XRP products.
- $257 million in multi-asset crypto ETPs.
The total AUM for all crypto ETPs hit $160.6 billion by the end of 2024, underscoring the sector’s rapid growth.
Canada Tops Crypto ETP Sellers
While the U.S. led crypto ETP purchases with $44.5 billion in inflows, Canada emerged as the largest seller, with $707 million in outflows.
Other notable outflows in 2024 included:
- Sweden: $682 million.
- Germany: $328 million.
On the other hand, Switzerland and Brazil posted positive inflows of $630 million and $234 million, respectively, partially offsetting the outflows from other nations.
What Lies Ahead?
As 2025 kicks off, the strong early performance of crypto ETPs reflects a continuation of bullish momentum, with investors capitalizing on the growing adoption of Bitcoin and Ethereum ETFs. The trends also underscore the ongoing global disparity in crypto investment behavior, with some markets increasing exposure while others pare back positions.
With total AUM for crypto ETPs surpassing $160 billion, the market’s potential for further growth remains promising. Observers will be closely watching the role of institutional products like spot Bitcoin ETFs in shaping the future of cryptocurrency investment.
Final Thoughts
The crypto ETP landscape is evolving rapidly, fueled by innovative products and increasing institutional interest. While challenges like regional disparities in investment behavior persist, the sector’s trajectory remains upward. With early 2025 showing promising inflows, crypto ETFs are poised to solidify their role as a cornerstone of digital asset investment.
