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bitcoin and cryptocurrency ETPs continue their impressive performance just a week into the new year. According to a CoinShares report presented 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 by crypto ETPs continues the asset's impressive streak last year.
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in the same CoinShares According to the report, crypto ETPs achieved outflows of over $44 billion in 2024, with bitcoin being the most traded digital asset. bitcoin recorded inflows of $38 billion, representing nearly 30% of all assets under management (AUM), while ethereum accelerated its pace in the second half of the year, with net inflows of more than $4.8 billion.
bitcoin ETPs Lead the Pack
CoinShare's James Butterfill shared these findings on the performance of crypto ETPs on the company's official site and social media pages. The report explained that bitcoin ETPs were the preferred digital investment product, taking up $38 billion of all bitcoin AUM from global ETPs.
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2024 saw $44 billion inflows into crypto ETPs, and 2025 is off to a good start with $585 million inflows so far.https://t.co/OczGDBUDph
—James Butterfill (@jbutterfill) <a target="_blank" href="https://twitter.com/jbutterfill/status/1876216961203621913?ref_src=twsrc%5Etfw” rel=”nofollow”>January 6, 2025
ethereum ETPs came in second, receiving approximately $4.8 billion in inflows in 2024, representing 26% of all eth AUM from global ETPs. ETP capital inflows last year are 2.4 times higher than those recorded in 2021 and 60 times higher than in 2023.
ethereum surpasses Solana in inflows in 2024, with just $69 million, representing just 4% of all assets under management. Although Solana's figures are small in relation to <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”nofollow”>bitcoin and <a target="_blank" href="https://www.coingecko.com/en/coins/ethereum” target=”_blank” rel=”nofollow”>ethereumstill leads all other altcoins.
Spot ETF approval helps boost inflows
The industry recorded record capital inflows in 2024, which is better than what the bull market experienced in 2021. In 2021, cryptocurrency investment products recorded over $10 billion in net inflows. In summary, last year's entries were 4 times greater than the amount recorded in 2021.
According to Bufferfill, the rise of 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 bitcoin spot ETF applications, followed by eight spot ETFs. ETF for Ether on May 22.
According to recent data, these points <a target="_blank" href="https://www.bitpanda.com/academy/en/lessons/bitcoin-etfs-explained/” target=”_blank” rel=”nofollow”>bitcoin ETF are the main reasons for bitcoin-related investment inflows. Butterfill also explained that these ETFs will redefine cryptocurrency investment inflows in the future.
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Better days ahead for US bitcoin spot ETPs
In addition to CoinShares, Galaxy Digital also offered an optimistic outlook for the future of the crypto investment industry. In a report shared last December 31, 2024, the company boldly predicted that the US spot ETP market will continue to rise in 2025. The report indicated that this niche will reach $250 billion in assets under management this year.
Meanwhile, Alex Thorne of Firmwide Research said that bitcoin ETPs are closing in on US gold ETPs in total value of assets under management.
Thorne added that bitcoin will continue to become one of the highest-performing assets in risk-adjusted terms. Other analysts shared that Ether spot ETPs will also rise this year. The ethereum blockchain will benefit from a Trump presidency and favorable regulatory changes.
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