Bitcoin and crypto ETPs continue their amazing performance just one week into the new year. According to a CoinShares report submitted by James Butterfill, crypto ETPs saw massive inflows of $585 million in the first few days of the year. Analysts say this strong early performance of the crypto ETPs continues the fund's impressive run from last year.
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In the same CoinShares report, crypto ETP achieved more than $44 billion outflow in 2024, with Bitcoin as the most traded digital asset. Bitcoin saw $38 billion in inflows, representing nearly 30% of Assets Under Management (AUM), while Ethereum picked up pace in the latter half of the year, with net inflows of over $4.8 billion.
Bitcoin ETP leads the pack
CoinShare's James Butterfill shared these findings about the performance of crypto ETPs on the company's official website and social media pages. The report explained that Bitcoin ETPs are the preferred digital investment product, accounting for around $38 billion of the Bitcoin AUMs of global ETPs.
In 2024 US$44bn went into crypto ETPs, 2025 off to a good start with US$585m inflows so farhttps://t.co/OczGDBUdph
— James Butterfill (@jbutterfill) January 6, 2025
Ethereum ETP was in second place, receiving approximately $4.8 billion in inflows in 2024, representing 26% of the ETH AUMs of global ETPs. The inflows of the ETP this year are 2.4 times more than what was recorded in 2021 and 60 times more than in 2023.
Ethereum beat Solana in terms of inflows in 2024, with only $69 million, representing only 4% of all funds under management. Although Solana's numbers are small compared to Bitcoin and Ethereumit still leads all other altcoins.
Allowing spot ETFs helps increase inflows
The industry saw record inflows in 2024, which is better than what the bull market experienced in 2021. In 2021, cryptocurrency investment returns recorded over $10 billion in net inflows . In short, last year's inflows were 4x more than the recorded level in 2021.
According to Bufferfill, the boom in global crypto investment products benefited from the US approval of spot ETFs for Bitcoin in January 2024. In January 2024, the US Securities and Exchange Commission approved 11 applications for spot Bitcoin ETFs, and the then eight spots. ETFs for Ether on May 22.
According to recent data, these spots Bitcoin ETFs the main reasons for the inflows in investments related to Bitcoin. Butterfill also explained that these ETFs will redefine the inflow for future crypto investments.
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Better days ahead for US Bitcoin Spot ETPs
In addition to CoinShares, Galaxy Digital also offered a rosy picture of the future of the crypto investments industry. In a report shared last December 31, 2024, the company boldly predicted that the US spot ETPs market will continue to rise in 2025. The report indicated that this niche will reach $250 billion in AUMs this year.
Meanwhile, Alex Thorne of Firmwide Research said Bitcoin ETPs are closing in on US gold ETPs in total assets under management.
Thorne said Bitcoin will continue to be one of the best performing assets on a risk-adjusted basis. Other analysts shared that spot ETPs Ether would go up this year. The Ethereum blockchain will benefit from the Trump presidency and favorable regulatory changes.
Featured image from OneSafe, chart from TradingView
