BlackRock’s iShares Bitcoin Trust ETF (IBIT) was the market leader, attracting $37.31 billion in inflows.
In 2024, spot Bitcoin exchange-traded funds (ETFs) in the United States experienced an extraordinary $35.66 billion in net inflows, which significantly surpassed the initial industry projections.
In the interim, spot Ether ETFs concluded the year on a high note, accumulating $349.3 million in inflows over the past four trading days, bringing their cumulative total to $2.68 billion since their July 23 introduction, as reported by Farside Investors.
The iShares Bitcoin Trust ETF (IBIT) of BlackRock was the market leader, with $37.31 billion in inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) and ARK’s 21Shares Bitcoin ETF (ARKB) followed with $11.84 billion and $2.49 billion, respectively.
The Bitwise Bitcoin ETF (BITB) was another significant contributor, with $2.19 billion in inflows. These figures significantly exceeded Galaxy Digital’s initial $14 billion first-year estimate.
Nevertheless, Bitcoin ETFs experienced a modest decline in the latter part of the year, with $1.33 billion in outflows since December 19.
IBIT experienced its largest single-day outflow of $188.7 million on Dec. 24, the fifth of the last six trading days to witness net outflows.
According to an October report from Binance, retail investors constituted nearly 80% of the demand for spot Bitcoin ETFs.
However, industry professionals predict that institutional participation will rise in 2025 as additional clearinghouses for spot Bitcoin ETF trading become operational.
VanEck anticipates a more conservative $180,000, while Bitwise’s Chief Investment Officer, Matt Hougan, anticipates that this transition could propel Bitcoin prices to $200,000 by 2025.
BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity Ethereum Fund (FETH) were the top two Ether ETFs in terms of inflows, with $3.52 billion and $1.56 billion, respectively.
The Bitwise Ethereum ETF (ETHW) exceeded $400 million, while Grayscale’s low-fee Ethereum Mini Trust ETF (ETH) attracted $608.1 million in inflows.
Despite the fact that Ether underperformed Bitcoin and Solana in 2024, analysts anticipate a rebound in 2025.
Ryan Rasmussen and Matt Hougan of Bitwise anticipate that the price of Ether will reach a prospective high of $7,000 as a result of factors such as the tokenization of real-world assets, the expansion of Ethereum Layer 2, and the increase in spot Ether ETF flows.
Last week, digital asset investment products saw net inflows of $308 million. However, this figure does not reflect a substantial single-day outflow of $576 million on December 19.
The Federal Reserve’s hawkish dot plot announcement primarily triggered market reactions, resulting in a total outflow of $1 billion over the final two days of the week.
The total assets under management (AuM) for digital asset ETPs decreased by $17.7 billion as a result of these movements, resulting in a 0.37% decline in AuM.
Although this outflow is alarming, it is diminutive in comparison to the greatest single-day outflow of 2.3% in mid-2022, which occurred in the aftermath of a FOMC interest rate rise.
Bitcoin demonstrated resilience, with a net inflow of $375 million for the week. Conversely, multi-asset investment products experienced the most significant losses, with a $121 million decline.
Despite Solana’s $8.7 million outflows, Ethereum maintained its upward trajectory with $51 million in inflows. Altcoins, including Polkadot, Horizen, and XRP, experienced lesser but significant inflows.
