A record $44.2 billion was invested in crypto funds in 2024, with the majority of this investment directed to Bitcoin. While US-based spot-based crypto ETFs stand out as the most notable development in the market, Ethereum showed a strong recovery, especially in the last quarter of the year. Interest in altcoins remained limited, but heavy investments in Bitcoin and Ethereum show that confidence and interest in the sector continues.
2024 saw historic inflows into the cryptocurrency market worldwide. $44.2 billion flowed into crypto funds throughout the year, nearly quadrupling the previous record of $10.5 billion in 2021. Crypto funds got off to a fast start in 2025, with $585 million in new investments coming in the first three days of the year. However, a total of $75 million in outflows occurred in the last two trading days of 2024.
The majority of fund inflows in 2024 were directed at Bitcoin. $38 billion was invested in Bitcoin funds throughout the year, accounting for 29 percent of total assets under management (AuM). Spot-based crypto ETFs in the US were the most notable products during this period. Representing 100 percent of all inflows, $44.4 billion went to these ETFs. However, Canada and Sweden saw outflows of $707 million and $682 million, respectively. The main reasons for these outflows were investors’ shift to US-based products and profit taking.
Ethereum showed a strong recovery in the last quarter of 2024 at $3,651.6, recording an inflow of $4.8 billion for the year. This amount accounts for 26 percent of Ethereum’s total AuM. Ethereum received 60 times more investment than in 2023 and 2.4 times more investment than in 2021. On the other hand, Solana attracted only $69 million in investment, remaining at 4 percent of AuM.
Altcoins, the category representing cryptocurrencies other than Ethereum, saw $813 million in inflows in 2024, representing only 18 percent of total assets under management. The intense interest in Bitcoin and Ethereum throughout the year caused altcoins to lag behind. However, short Bitcoin investment products attracted $108 million in investments. However, these products’ inflows fell short of last year’s $116 million.
The historical fund flows in the cryptocurrency market clearly demonstrated the continued confidence and interest of investors. The positive start to 2025 indicates that this momentum will continue.