Cryptocurrency Funds Witness Record Inflow of $44.2 Billion in 2024
The year 2024 concluded with record inflows into cryptocurrency investment products. A total of $44.2 billion in inflows was recorded, nearly four times the previous record of $10.5 billion in 2021.
Much of this increase was driven by the launch of spot-based exchange-traded funds (ETFs) in the US. The US accounted for 100% of the total with inflows of $44.4 billion, while entries from other countries were also recorded. For instance, Switzerland saw inflows of $630 million, while Canada and Sweden experienced outflows of $707 million and $682 million, respectively. These outflows were attributed to investors shifting towards US-based products and some realizing profits.
The year 2025 began strongly, with $585 million in inflows to cryptocurrency investment products recorded in the first three days, according to CoinShares data. However, on a weekly basis (including the last two trading days of 2024), there was a net outflow of $75 million. Throughout 2024, Bitcoin dominated investments in cryptocurrency assets, leading with $38 billion in inflows and representing 29% of total assets under management (AuM). Despite the price increases, short-Bitcoin investment products also attracted interest with inflows of $108 million, although this amount was below the $116 million in inflows seen in 2023.
Ethereum, on the other hand, witnessed a resurgence towards the end of 2024, reaching total inflows of $4.8 billion and representing 26% of AuM. This amount was 2.4 times that seen in 2021 and 60 times the inflows of 2023. Ethereum significantly surpassed Solana, which had inflows of $69 million, and Solana accounted for only 4% of total AuM.
Inflows into altcoins remained limited, with altcoins other than Ethereum seeing a total of $813 million in inflows in 2024, constituting 18% of total AuM. This indicates that investors focused their attention more on assets with larger market capitalizations like Bitcoin and Ethereum.
As 2024 came to a close, marked by records in cryptocurrency investment products, the year 2025 made a strong start. However, the performance of US-based ETFs and global macroeconomic conditions are likely to determine the trajectory of the digital asset markets for the remainder of the year.