In 2024, spot Bitcoin exchange-traded funds (ETFs) in the United States reached an impressive $35.66 billion in net inflows, greatly surpassing earlier industry projections. This marked a significant achievement in the crypto ETF space, showing strong investor interest in Bitcoin as an asset class.
Spot Ether ETFs End the Year Strong
Similarly, spot Ether ETFs saw a robust finish to the year, attracting $349.3 million in the last four trading days. This brought their total inflows to $2.68 billion since launching on July 23, as reported by Farside Investors.
Leading Bitcoin ETFs by Inflows
BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the pack with a remarkable $37.31 billion in inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $11.84 billion, and ARK’s 21Shares Bitcoin ETF (ARKB) secured $2.49 billion. The Bitwise Bitcoin ETF (BITB) also stood out, bringing in $2.19 billion.
Decline in Bitcoin ETF Inflows Toward Year-End
Despite strong performance earlier in the year, Bitcoin ETFs experienced a downturn toward the end of 2024. From December 19 onward, $1.33 billion in outflows were recorded. Five of the final six trading days saw net outflows, with IBIT facing a significant $188.7 million outflow on December 24.
Retail Investors Dominate Spot Bitcoin ETF Demand
An October report from Binance revealed that nearly 80% of the demand for spot Bitcoin ETFs came from retail investors. However, experts predict that institutional interest in these ETFs will grow in 2025 as more clearinghouses for spot Bitcoin ETF trading become operational.
Predictions for 2025: Bitcoin Price Potential
Looking ahead, Bitwise’s Chief Investment Officer, Matt Hougan, predicts that Bitcoin prices could reach $200,000 by 2025, with VanEck offering a more conservative forecast of $180,000. Analysts are optimistic about further growth in 2025.
Ethereum ETFs Show Solid Performance
On the Ethereum ETF front, BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity’s Ethereum Fund (FETH) led inflows, attracting $3.52 billion and $1.56 billion, respectively. Grayscale’s low-fee Ethereum Mini Trust ETF (ETH) brought in $608.1 million, and Bitwise’s Ethereum ETF (ETHW) crossed $400 million.
Ether’s Outlook for 2025
Despite underperforming Bitcoin and Solana in 2024, Ethereum’s outlook for 2025 remains positive. Experts, including Bitwise’s Ryan Rasmussen and Matt Hougan, anticipate that factors like Ethereum Layer 2 expansion, increased spot Ether ETF flows, and real-world asset tokenization will drive Ether’s price up to a potential $7,000.
Digital Asset Investment Products Experience Inflows
Digital asset investment products saw $308 million in net inflows last week. However, this figure masked a large single-day outflow of $576 million on December 19, caused by reactions to the Federal Reserve’s hawkish dot plot announcement. Despite this, Bitcoin showed resilience with $375 million in inflows, while multi-asset products faced greater losses, shedding $121 million. Ethereum continued its upward trend with $51 million in inflows, and Solana experienced outflows of $8.7 million.
Altcoins See Smaller Inflows
Altcoins such as XRP, Horizen, and Polkadot also saw smaller but noteworthy inflows, contributing to the overall positive sentiment in the digital asset market.
In conclusion, while there were fluctuations in the market, the outlook for Bitcoin, Ethereum, and other digital assets remains strong, with predictions for substantial growth in 2025.
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