Record-Breaking Inflows in Digital Asset Investment Products
The digital asset investment market concluded 2024 on a high note, with a record-breaking $44.2 billion in inflows. This figure surpasses the previous record of $10.5 billion set in 2021 by nearly four times. Despite the crypto market experiencing a downturn in the latter part of the year, the introduction of spot-based ETFs in the US drove this surge, accounting for 100% of the inflows at $44.4 billion.
Bitcoin Leads with $38B Inflows in 2024
According to CoinShares’ ‘Digital Asset Fund Flows Weekly Report’ for 2025, Bitcoin dominated the market in 2024, securing $38 billion in inflows and accounting for 29% of total AuM. This significant influx of capital into Bitcoin investment products underscores the asset’s enduring popularity among investors. Short-Bitcoin investment products also gained $108 million, although this was slightly less than the $116 million recorded in 2023.
Ethereum and Altcoins Experience Varied Inflows
Ethereum rebounded strongly towards the end of the year, achieving $4.8 billion in inflows, representing 26% of its AuM. This figure is 2.4 times higher than in 2021 and 60 times the inflows of 2023. In contrast, Solana attracted only $69 million in inflows, representing 4% of AuM. Altcoins, excluding Ethereum, contributed $813 million in inflows, equivalent to 18% of AuM.
Bitcoin Faces “Hefty Sell Wall” at $100,000 Mark
As the new year began, Bitcoin briefly received a boost from buyers after a dull December. The crypto asset briefly pushed beyond $99,800, inching closer to the coveted $100,000 mark. However, QCP Capital describes this milestone as a “hefty sell wall,” where increased selling pressure was observed in December. While funding rates surged above 60% when the milestone was first breached on December 5, current funding levels remain stable, reducing the likelihood of an imminent short squeeze.
Conclusion
In conclusion, the digital asset investment market experienced a record-breaking year in 2024, driven primarily by the introduction of spot-based ETFs in the US. Bitcoin dominated the market, securing $38 billion in inflows, while Ethereum and altcoins experienced varied inflows. As Bitcoin approaches the $100,000 mark, it faces a “hefty sell wall,” which may impact its price movement in the short term.
Source: Cryptopotato.com
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