Crypto Funds Achieve $44 Billion Net Inflows in 2024
In 2024, global crypto funds managed by firms such as BlackRock, Fidelity, and Grayscale reached $44.2 billion in net inflows, according to CoinShares. This surpassed the previous record of $10.5 billion set in 2021, indicating heightened institutional interest in digital assets.
Bitcoin-based investment products accounted for $38 billion of these inflows, representing 29% of total Bitcoin assets under management. A significant portion stemmed from US spot Bitcoin ETFs, which attracted $35 billion in net inflows over the year.
Ethereum-based products rebounded in late 2024, ending the year with $4.8 billion in net inflows. US spot Ether ETFs accumulated $2.6 billion during the same period. XRP and SOL funds also experienced notable investments, seeing inflows of $438 million and $69 million, respectively.
Short-Bitcoin products drew $108 million, despite a slight decrease from 2023 levels, showing that bearish strategies remained viable amid rising prices. The approval and launch of the first U.S. spot Bitcoin and Ethereum ETFs significantly contributed to this growth, generating a combined $44.4 million in inflows.
Conversely, Canadian and Swedish crypto funds faced annual outflows of $707 million and $682 million, respectively, as investors shifted toward U.S.-based products or realized gains. Nonetheless, the overall momentum in the industry remains robust.
What’s Next for Crypto Funds?
Digital asset investment products have started 2025 strongly, with US spot Bitcoin ETFs recording $585 million in net inflows since the year's start. Notably, January 3 saw inflows of $908 million, indicating bullish sentiment for the upcoming year.
Industry experts anticipate further advancements for crypto funds and ETFs. ETF analyst Nate Geraci outlined predictions for enhancements in ETF mechanisms, including in-kind creation and redemption for Bitcoin and Ethereum ETFs, as well as the potential approval of Solana-based ETFs. Geraci also expects filings for Bitcoin-denominated ETFs linked to reverse-cap-weighted S&P 500 indices within two months.
Prediction…
Reverse cap weighted S&P 500 ETF denominated in bitcoin.
We will see this filing in next 2mos.
— Nate Geraci (@NateGeraci) January 4, 2025
Analysts project significant institutional demand for cryptocurrencies in 2025. A December report by Sygnum Bank indicated that increased demand from sovereign wealth funds, pension funds, and major institutional investors could lead to "demand shocks," potentially driving Bitcoin prices higher. Research firm Bernstein suggested that BTC ETF inflows could exceed $70 billion by year-end, doubling the $35 billion seen in 2024.