A record inflow of $44.2 billion accrued to global crypto investment funds as asset managers registered increased interest in 2024. Notable players in the asset management sector include BlackRock, Fidelity, Bitwise, ProShares, and Grayscale, among others.
Record-Breaking Year and Promising Start for 2025
This represents over $33 billion more than the 2021 annual peak of $10.3 billion. Meanwhile, according to James Butterfill, CoinShares Head of Research, 2025 has also started with a good start for digital asset investment products.
The net inflows generated in the first three days of 2025 stood at $585 million. The outgone week, which includes the last two days in 2024, registered a net outflow of $75 million cumulatively. These developments were attained with the launch of U.S spot Bitcoin exchange-traded funds (ETFs).
The Ethereum ETFs came later, in July 2024. Both Bitcoin ETF and Ethereum ETF contributed significantly to the digital asset products.
Global Dynamics and Regional Shifts in Crypto Investments
Outside of the United States, crypto investment products in Switzerland netted $630 million worth of inflows for 2024. However, the net annual outflows from funds based in Canada and Sweden of $707 million and $682 million, respectively, canceled out the overall figures.
The high outflows outside the U.S. prompted a switch on the part of investors from these digital products. According to Butterfill, most investors switched to U.S.-based products to maximize their investments for profit-taking.
In terms of performance, Bitcoin-based products led globally and generated $38 billion of the net inflows. It also accounted for about 29% of all-time Bitcoin assets under management (AUM) at the funds.
XRP and Solana Make Notable Contributions
Interestingly, although Ethereum-based products had a long spell of underperformance, it later gained momentum. The Ethereum products raked in annual net inflows of $4.8 billion. This performance puts the product at 60 times the 2023 figures and 2.4 times those attained in 2021.
Other assets covered in the report included XRP-based funds and Solana investment products. The record shows XRP generated the third-largest single asset net inflows for 2024 with $438 million. Meanwhile, Solana was able to attract $69 million in inflows.
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