Crypto Inflows Hit $585 Million In First Week of 2025
Cryptocurrency inflows surged to $585 million in the first three trading days of 2025, marking a strong start to the year. However, for the entire week, including the last two trading days of 2024, net outflows amounted to $75 million.
Prior to this, global cryptocurrency inflows totaled $44.2 billion in 2024, almost four times the record of $10.5 billion set in 2021.
Bitcoin dominance and the role of ETFs
The latest CoinShares report attributes this result to investors’ continued shift to U.S. products. Specifically, spot ETFs (exchange-traded funds) for Bitcoin and Ethereum continue to attract interest from institutional investors.
“At the end of 2024, global capital inflows reached a record $44.2 billion, almost 4 times the record inflow of $10.5 billion in 2021. Marked by the entry of US spot ETFs, 100% of the inflows were $44.4 billion Dollar.” read.
In fact, Bitcoin led the way in 2024, attracting $38 billion in inflows. It accounts for a whopping 29% of total assets under management, an impressive performance driven by the Bitcoin ETF.
These financial instruments have played a key role in legitimizing Bitcoin as an investment asset, providing institutional and retail investors with a regulated and accessible way to invest. According to BeInCrypto, Bitcoin ETF expected to further dominate in 2025As demand for safe, compliant crypto investment vehicles continues to grow, it will likely drive greater inflows.
VanEck CEO Jan van Eck recently urged investors to increase their holdings of Bitcoin and gold by 2025. He specifically emphasized that BTC can provide valuable protection inflationfiscal uncertainty, and global de-dollarization trend.
Altcoins struggle to gain traction
The report also highlights how Ethereum experienced a significant recovery at the end of 2024, with inflows reaching $4.8 billion by the end of the year. This represents 26% of assets under management, a 2.4x increase compared to 2021, and a staggering 60x increase compared to 2023.
As is the case with Bitcoin, the growing popularity of Ethereum ETFs is driving growth. According to BeInCrypto, the Ethereum ETF set new record In December, institutional interest surged to over $2 billion.
Excluding Bitcoin and Ethereum, altcoin inflows in 2024 will be relatively modest at $813 million, accounting for only 18% of assets under management. This shows that while interest in alternative digital assets persists, it still pales in comparison to the dominance of Bitcoin and Ethereum.
Investors appear to prioritize assets with established records of achievement and strong infrastructure. From this perspective, BlackRock recently stated that it will focus on Bitcoin and Ethereum, Postpone any altcoin ETF plans.
“We are only at the tip of the iceberg with Bitcoin and especially Ethereum. Only a small percentage of clients own IBIT and ETHA, so that’s where we’re focused (relative to the launch,” Jay Jacobs, head of BlackRock’s ETF division, reportedly said New altcoin ETF). point out.
Nonetheless, the continued rise of cryptocurrency ETFs will play a central role in driving the market. Industry experts predict that in addition to attracting new capital, these financial instruments will enhance market stability by providing institutional investors with a regulated entry point.
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