This article provides an overview of the development and cash flow trends in the cryptocurrency market, especially in the context of the launch of physically-backed ETFs in the US. Notable points include:
1. The growth of physically-backed ETFs in the US:
• These funds attracted cash flows of up to 44.4 billion USD, accounting for a significant portion of total global cash flow in 2024.
• This indicates significant interest from investors in regulated financial products in the US.
2. Performance of major coins:
• Bitcoin (BTC):
• Leading with an annual cash flow of 38 billion USD, equivalent to 29% of total assets under management (AUM).
• Short-term Bitcoin investment products also recorded cash inflows of 108 million USD, despite rising prices.
• Ethereum (ETH):
• Achieving an annual cash flow of 4.8 billion USD (26% AUM), many times higher than previous years.
• Ethereum outperformed Solana (SOL) in cash flow performance, solidifying its position in the altcoin market.
3. Trends in altcoin cash flow:
• Altcoins outside of Ethereum attracted 813 million USD, accounting for only 18% AUM, indicating that investors are still more focused on major coins.
4. Regional allocation:
• Countries like Switzerland recorded inflows (630 million USD), but were affected by outflows from Canada (707 million USD) and Sweden (682 million USD), as investors prioritized US-based products.
5. Record cash flow in 2024:
• Total global cash flow reached 44.2 billion USD, nearly 4 times the previous record set in 2021.
Significance:
• The emergence of physically-backed ETFs in the US has significantly changed the investment dynamics, causing global cash flow to concentrate on regulated products.
• Smart investors are reallocating their portfolios, focusing more on major assets like Bitcoin and Ethereum, while altcoins make up a smaller proportion.
• Strong cash flow at the beginning of 2025 (585 million USD in just 3 days) indicates a positive outlook for the cryptocurrency market this year.