Cryptocurrency Investment Products: A Record-Breaking Year in 2024
In a significant start to the year, cryptocurrency exchange-traded products (ETPs) have seen substantial inflows in the first three days of 2025. According to data from crypto investment firm CoinShares, global ETPs posted $585 million in inflows during this period. However, it’s worth noting that these early inflows did not offset the heavy selling observed in the last two trading days of 2024. As a result, crypto ETPs saw $75 million in net outflows for the full previous trading week.
A Record-Breaking Year in Review
Despite the late-year dip, 2024 closed as a record-breaking year for crypto ETFs. With $44.2 billion in inflows, it marked a 320% increase from the previous record of $10.5 billion set in 2021. The historic launch of spot Bitcoin exchange-traded funds (ETFs) in the United States in January 2024 contributed significantly to this growth.
Bitcoin Dominates ETF Inflows
Bitcoin-based ETPs dominated in 2024, with $38 billion in inflows, accounting for 29% of the total assets under management (AUM). This is not surprising, given the significance of Bitcoin as a leading cryptocurrency. However, it’s worth noting that other cryptocurrencies like Ether also saw substantial growth.
Ether’s Resurgence
Ether-based ETPs experienced a resurgence in late 2024, bringing full-year inflows to $4.8 billion. This represents a significant portion of all $18.6 billion ETH in AUM, with a whopping 26% increase. It’s clear that investors are becoming increasingly interested in alternative cryptocurrencies beyond Bitcoin.
Total Assets Under Management (AUM)
The total AUM for all crypto ETPs reached an impressive $160.6 billion in 2024. This growth was bolstered by significant inflows in various assets, including:
- XRP products: $438 million
- Multi-asset ETPs: $257 million
Country-Specific Trends
While the United States emerged as the largest crypto ETP buyer, with $44.5 billion in inflows coming from the country, Canada has surprisingly become the biggest crypto ETP seller in 2024. According to CoinShares data, Canadian crypto ETPs saw $707 million in outflows last year.
Other countries that posted significant outflows include:
- Sweden: $682 million
- Germany: $328 million
These outflows wiped out inflows from countries like Switzerland and Brazil, which saw $630 million and $234 million in inflows, respectively.
Implications for Investors
The record-breaking growth of crypto ETFs in 2024 has significant implications for investors. As the cryptocurrency market continues to mature, it’s essential to stay informed about trends and developments that can impact investment strategies.
With Bitcoin dominating ETF inflows and Ether experiencing a resurgence, investors should consider diversifying their portfolios to capitalize on these opportunities. Additionally, understanding country-specific trends and regulatory changes will be crucial in navigating the complex landscape of cryptocurrency investments.
Looking Ahead
As we enter 2025, it’s clear that the demand for crypto ETPs continues to grow. With new products launching and existing ones expanding, investors should remain vigilant about market developments and adjust their strategies accordingly.
In our next article, we’ll explore three key predictions for the year ahead: SOL ETFs, AI trading, and new threats to the cryptocurrency market. Stay tuned for more insights and analysis on the latest trends in crypto investments.
Related Articles
- 3 Crypto Predictions Going into 2025: SOL ETFs, AI Trading, New Threats
- Magazine: Ether May ‘Struggle’ in 2025, SOL ETF Odds Rise, and More: Hodler’s Digest, Dec. 29 – Jan. 4
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