Cryptocurrency inflows surged to $585 million in the first three trading days of 2025, signaling a strong start to the year. However, the full week, which includes the last two trading days of 2024, saw net outflows of $75 million.
This comes after a record-breaking 2024, which concluded with global crypto inflows of $44.2 billion — nearly four times the previous record of $10.5 billion set in 2021.
Bitcoin Dominance and the Role of ETFs:
The latest report from CoinShares attributes this finding to the ongoing shift of investors toward U.S.-based products. Specifically, Bitcoin and Ethereum-based exchange-traded funds (ETFs) continue to attract interest from institutional investors.
“2024 ended with record inflows of $44.2 billion globally, nearly 4x the previous record set in 2021 of $10.5 billion. It was highlighted by the entry of US-based ETFs, which saw 100% of inflows at $44.4 billion.”
Bitcoin actually led the way in 2024, attracting $38 billion in inflows. It accounted for 29% of total assets under management, an impressive performance driven by Bitcoin ETFs.
These financial instruments have been pivotal in legitimizing Bitcoin as an investment asset, offering institutional and individual investors a regulated and accessible way to gain exposure. As BeInCrypto reports, Bitcoin ETFs are expected to dominate even more in 2025, potentially driving greater inflows as demand for secure and compliant cryptocurrency investment vehicles continues to grow.
VanEck CEO Jan van Eck recently urged investors to increase their Bitcoin and gold holdings through 2025. He highlighted BTC, in particular, as a valuable hedge against inflation, financial uncertainty, and global de-dollarization trends.
Altcoins struggle to gain traction:
The report also highlights how Ethereum saw a major rebound in late 2024, ending the year with $4.8 billion in inflows. This represents 26% of assets under management, indicating a 2.4x increase from 2021 and a staggering 60x growth compared to 2023.
As in the case of Bitcoin, the growing popularity of Ethereum ETFs has fueled growth. According to BeInCrypto, Ethereum ETFs hit a new record in December as institutional interest surged to over $2 billion.
Outside of Bitcoin and Ethereum, altcoins saw relatively modest inflows of $813 million in 2024, representing just 18% of AuM. This suggests that while interest in altcoins continues, it still pales in comparison to the dominant positions of Bitcoin and Ethereum.
Investors seem to favor assets with proven track records and solid infrastructure. To put this into perspective, BlackRock recently said it would focus on Bitcoin and Ethereum, shelving any plans for an altcoin ETF.
“We’re just at the tip of the iceberg with Bitcoin and especially Ethereum. Only a small portion of our clients own IBIT and ETHA, so that’s what we’re focusing on (versus launching new altcoin ETFs),” Jay Jacobs, head of ETFs at BlackRock, said.
However, the continued rise of cryptocurrency ETFs is expected to play a central role in driving the market. Industry experts expect that in addition to attracting new capital, these financial instruments will enhance market stability by providing a regulated entry point for institutional investors.