Crypto markets are showing a strong recovery with a massive inflow of $585 million in the first days of 2025, indicating renewed interest from investors.
Despite these initial gains, Bitcoin has continued to be the asset that attracts the most investor attention and the bulk of investment flows through 2024. According to the latest CoinShares report, Bitcoin took a major step towards institutional adoption last year, attracting a whopping $38 billion in investment.
According to CoinShares data, cryptocurrency inflows rose to $585 million by the beginning of 2025, with Bitcoin maintaining its leadership with strong institutional interest.
Bitcoin’s Dominance and the Role of ETFs
The CoinShares report attributes Bitcoin’s leadership to the intense interest in products, especially those based in the US. In particular, spot-based ETFs (exchange-traded funds) continue to attract institutional investors’ attention for Bitcoin and Ethereum. “The end of 2024 ended with a record $44.2 billion in global investment flows, almost four times the record $10.5 billion in 2021. This record was broken by US spot-based ETFs contributing $44.4 billion in investments,” the report explains.
Bitcoin led the way with $38 billion in investments in 2024, accounting for 29% of total assets under management. The impressive performance of Bitcoin ETFs played a key role in legitimizing Bitcoin as an investment asset. These financial instruments allowed institutional and retail investors to invest in Bitcoin in a regulated and accessible manner. According to COINOTAG, Bitcoin ETFs are expected to become even more dominant by 2025, which will lead to increased investment flows amid growing demand for reliable crypto investment vehicles.
VanEck CEO Jan van Eck encouraged investors to increase their Bitcoin and gold holdings through 2025. He emphasized that BTC provides a valuable hedge against inflation, financial uncertainty, and global dollar devaluation.
Status of Altcoins
The report notes that Ethereum experienced a significant surge towards the end of 2024, finishing the year with an inflow of $4.8 billion. This accounts for 26% of total assets under management, marking a 2.4x increase over 2021 and a 60x increase over 2023.
As with Bitcoin, the growing popularity of Ethereum ETFs has also supported this growth. According to COINOTAG, Ethereum ETFs hit a new record in December with institutional interest exceeding $2 billion.
However, excluding Bitcoin and Ethereum, altcoins accounted for just 18% with a more modest inflow of $813 million in 2024. This suggests that interest in alternative digital assets continues but remains small in the face of Bitcoin and Ethereum’s dominance.
Investors appear to be prioritizing assets with solid infrastructure and a strong track record. For example, BlackRock announced that it will focus on Bitcoin and Ethereum, while postponing plans for an altcoin ETF. “We are just at the tip of the iceberg on Bitcoin and Ethereum in particular. Only a small portion of our clients own IBIT and ETHA, so we prefer to focus on that space,” said Jay Jacobs, head of BlackRock’s ETF division.
Still, the rise of crypto ETFs will continue to play a central role in the market, with experts predicting that these financial instruments will not only attract new capital but also increase market stability by providing a regulated entry point for institutional investors.
