New Year, New Money: Crypto Attracts $585M in Fresh Capital Inflows

In the initial three trading days of 2025, cryptocurrency inflows surged to an impressive $585 million, signaling an optimistic start to the new year. Despite this promising opening, the entire week, which encompassed the final two trading days of 2024, concluded with net outflows amounting to $75 million.

This development follows a monumental 2024. The year ended with global crypto inflows reaching a staggering $44.2 billion, nearly quadrupling the previous record of $10.5 billion established in 2021.

According to the latest CoinShares report , this trend is attributed to a shift among investors toward US-based products. Bitcoin and Ethereum continue to garner attention through spot-based ETFs, captivating institutional investors.

“The end of 2024 saw record inflows globally, summing up to $44.2 billion—an increase almost four times the previous peak in 2021,” the report highlighted. Notably, US spot-based ETFs accounted for the entirety of these inflows, at $44.4 billion.

Throughout 2024, Bitcoin spearheaded with $38 billion in inflows. It represented as much as 29% of total assets under management, primarily powered by Bitcoin ETFs.

These financial vehicles have significantly legitimized Bitcoin as an investment asset. They offer both institutional and retail investors a regulated avenue to gain exposure. Projections for 2025 suggest that Bitcoin ETFs will likely continue to absorb substantial inflows, driven by a growing appetite for secure crypto investments.

VanEck CEO Jan van Eck has recently encouraged investors to expand their Bitcoin and gold holdings through 2025. He emphasized Bitcoin’s role in hedging against inflation, fiscal turbulence, and global de-dollarization.

The report also notes Ethereum's notable comeback in late 2024, concluding the year with $4.8 billion in inflows. This reflects 26% of AuM and a substantial 2.4-fold increase from 2021. Notably, it also marks a significant growth of 60 times compared to 2023.

Ethereum ETFs, much like their Bitcoin counterparts, have played a crucial role in this growth. Institutional interest surpassed $2 billion by December, setting new benchmarks.

Conversely, altcoins managed comparatively modest inflows of $813 million in 2024, representing just 18% of AuM. While enthusiasm for alternative digital assets persists, Bitcoin and Ethereum maintain prominent positions. Investors are seen prioritizing assets with established performance and robust infrastructure. BlackRock has declared a focus on Bitcoin and Ethereum, postponing any plans for altcoin ETFs.

“We’re merely scratching the surface with Bitcoin and particularly Ethereum. Only a small fraction of our clients have invested in IBIT and ETHA, so that remains our focus rather than launching new altcoin ETFs,” Jay Jacobs, BlackRock’s ETF chief, reportedly commented.

Regardless, the rise of crypto ETFs is set to prominently influence the market. Industry analysts predict that these instruments will not only attract new capital but also bolster market stability by offering regulated entry points for institutional investors.