Investment capital in cryptocurrency products reached a record $44.2 billion in 2024, quadrupling compared to 2021, primarily due to the launch of spot Bitcoin ETFs in the U.S.
The year 2024 witnessed an explosion of investment capital in the cryptocurrency market, reaching a record $44.2 billion, according to the latest report from CoinShares. This impressive figure is nearly four times the previous historic high of $10.5 billion in 2021, marking a significant turning point in the development of this industry.
The main driver of this outstanding growth is believed to be the launch of spot Bitcoin ETFs in the U.S., opening the door for traditional investors to more easily access this digital asset.
Bitcoin continues to assert its dominant position in the market, attracting $38 billion, accounting for 29% of the total assets under management (AuM) in cryptocurrency-related products. This massive influx of capital has significantly boosted the amount of Bitcoin held in ETF funds, surpassing 1 million BTC in less than a year since the first spot Bitcoin ETFs were approved.
Top products such as BlackRock's IBIT and Fidelity's FBTC have attracted significant interest from investors. BlackRock's IBIT stands out as the most successful ETF launch in the past decade, surpassing nearly 3,000 other ETFs, demonstrating Bitcoin's strong appeal to institutional investors.
The chart shows the flow of cryptocurrency products. Source: CoinShares The impact of Bitcoin ETFs on global capital flows.
The emergence of spot Bitcoin ETFs in the U.S. has created a wave of capital flow shifts globally. CoinShares' report indicates that the U.S. leads the world in cryptocurrency investment capital, accounting for almost all of the $44.4 billion recorded in total. Switzerland ranks second with $630 million, indicating the growing interest of international investors in digital assets.
However, some other markets have witnessed a trend of capital withdrawal. Canada and Sweden recorded withdrawals of $707 million and $682 million, respectively. According to Mr. James Butterfill, Head of Research at CoinShares, the capital outflows from these regions reflect a shift in investment towards Bitcoin ETFs in the U.S., confirming the increasing attractiveness of the U.S. cryptocurrency market. The capital flow disparity between countries clearly illustrates the strong impact of the Bitcoin ETF launch in the U.S., creating a domino effect globally.
In addition to Bitcoin, Ethereum, the second-largest cryptocurrency, also recorded impressive growth, attracting $4.8 billion in capital inflow, accounting for 26% of Ethereum's total assets under management. This figure is 2.4 times the total investment in Ethereum in 2021 and far exceeds the performance in 2023. The resurgence of Ethereum in the late year, along with the development of spot ETH ETFs, has significantly contributed to this growth.
The chart shows the flow of cryptocurrency assets. Source: CoinShares
In contrast, Solana, Ethereum's competitor, only attracted $69 million, accounting for 4% of total assets under management, indicating a clear polarization in investment flows into altcoins. Other major cryptocurrencies like Polkadot, Cardano, XRP, and others also attracted $813 million, accounting for 18% of assets under management.
In early 2025, the positive trend continued with $666 million flowing into Bitcoin investment products in the U.S. in just the first two trading days. Data from Farside shows that January 3 recorded a record capital inflow of $908 million in one day, with Fidelity leading at $357 million, followed by BlackRock ($253 million) and Ark Invest ($222 million).
