Bitcoin and cryptocurrency Exchange-Traded Products (ETPs) are off to a strong start in the new year, with a remarkable performance just a week in. A report from CoinShares, authored by James Butterfill, highlighted that crypto ETPs attracted significant inflows of $585 million in the early days of 2025. This continued success follows the impressive trend seen in the assets throughout the previous year.
The same report from CoinShares revealed that crypto ETPs witnessed outflows exceeding $44 billion in 2024, with Bitcoin leading the way as the most traded digital asset. Bitcoin alone accounted for $38 billion of the inflows, representing nearly 30% of the total Assets under Management (AUM). Ethereum also saw a surge in the latter part of the year, with net inflows surpassing $4.8 billion.
Bitcoin ETPs at the Forefront
James Butterfill from CoinShares shared these insights on the performance of crypto ETPs, emphasizing that Bitcoin ETPs were the favored digital investment choice, capturing $38 billion of the global ETPs’ Bitcoin AUMs.
2024 saw US$44bn inflows in to crypto ETPs, 2025 off to a good start with US$585m inflows so farhttps://t.co/OczGDBUdph
— James Butterfill (@jbutterfill) January 6, 2025
Following Bitcoin, Ethereum ETPs ranked second, attracting around $4.8 billion in inflows during 2024, comprising 26% of all ETH AUMs in global ETPs. The substantial increase in inflows compared to previous years signifies a growing interest in crypto investments.
While Ethereum outpaced Solana in inflows during 2024, with Solana securing just $69 million, it still stands as a significant player among altcoins, even though its numbers are modest compared to Bitcoin and Ethereum.
Boost in Inflows Due to Spot ETFs Approval
The crypto industry witnessed remarkable inflows in 2024, surpassing the figures seen during the bull market of 2021. The approval of spot ETFs for Bitcoin by the US in January 2024 played a significant role in boosting global investments. The subsequent approval of Ether spot ETFs further fueled the momentum in the market.
James Butterfill highlighted that these spot Bitcoin ETFs played a crucial role in driving inflows towards Bitcoin investments. He predicted that these ETFs would redefine the landscape of crypto investments in the future.
Looking ahead, Galaxy Digital also painted a promising picture for the future of crypto investments, projecting substantial growth in the US spot ETPs market in 2025. The bullish sentiment indicates a potential AUM of $250 billion for this sector in the current year.
Analysts foresee Bitcoin ETPs closing in on the total value of assets under management in US gold ETPs, positioning Bitcoin as a top-performing asset. Additionally, expectations are high for Ether spot ETPs, with the Ethereum blockchain poised to benefit from favorable regulatory changes and market dynamics.
Featured image from OneSafe, chart from TradingView
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