Introduction
Cryptocurrency investment products have made a strong start in 2025, with global crypto exchange-traded products (ETPs) attracting significant inflows. This article delves into the performance of these products throughout 2024, highlights key trends, and provides insights for 2025.
2024’s Crypto ETP Performance
Global Crypto ETF Inflows
In the first three days of 2025, global crypto ETPs saw $585 million in inflows. However, despite this early momentum, the last two trading days of 2024 resulted in net outflows of $75 million for the week. CoinShares reported that crypto ETPs experienced a net outflow of $75 million during these periods.
A Record-Breaking Year
despite the late-year dip, 2024 closed as a record-breaking year for crypto ETFs with $44.2 billion in inflows—a 320% increase from the previous record of $10.5 billion set in 2021.
Bitcoin Dominance
The launch of spot Bitcoin exchange-traded funds (ETF) in January 2024 was a significant driver of these inflows. James Butterfill, CoinShares’ head of research, noted that Bitcoin dominated ETF inflows at 29%. This contribution underscores the growing interest in Bitcoin as an investment vehicle.
Ether’s Resurgence
In late 2024, interest in Ethereum-based ETPs res surface, with full-year inflows reaching $4.8 billion. This represents 26% of all $18.6 billion in AUM ( Assets Under Management) for these products.
AUM Growth in 2024
Total AUM for all crypto ETPs reached $160.6 billion in 2024, driven by significant inflows into specific product lines. Notably, XRP-based ETPs saw $438 million in inflows, while multi-asset ETPs attracted $257 million.
Regional Analysis
U.S. as the Largest Crypto ETP Buyer
The U.S. emerged as the largest crypto ETP buyer in 2024 with inflows of $44.5 billion. This reflects a strong market presence and investor confidence in U.S.-based assets.
Canada’s Rise as a Leading ETP Seller
Contrary to expectations, Canada emerged as the largest crypto ETP seller in 2024. CoinShares reported that Canadian ETPs saw $707 million in outflows last year.
Outflows in Other Key Markets
Other regions also experienced notable outflows: Sweden and Germany saw $682 million and $328 million in outflows, respectively. These outflows were partly offset by inflows from Switzerland ($630 million) and Brazil ($234 million).
Predictions for 2025
Looking ahead to 2025, several factors are expected to influence crypto ETP performance. These include the continued growth of digital assets like Bitcoin and Ethereum, potential regulatory clarity in key markets, and increasing investor demand for low-risk investment options.
Conclusion
2024 was a year of significant developments in the cryptocurrency space, with both inflows and outflows playing crucial roles in shaping the market landscape. As we move into 2025, continued innovation and regulatory stability are expected to drive growth in crypto ETPs.
This comprehensive overview provides insights into the trends and factors influencing crypto ETP performance, setting the stage for a deeper exploration of these products’ future prospects.
