US-listed Bitcoin and Ether ETFs Record $38.3B in Net Inflows in Their Launch Year

The launch of spot Bitcoin and Ether exchange-traded funds (ETFs) in 2024 has exceeded expectations, with total net inflows reaching an impressive $38.3 billion. The year marked a milestone for the cryptocurrency market, showcasing increasing demand for these digital asset investment products.

Bitcoin ETFs Lead with $35.66 Billion in Net Inflows

Spot Bitcoin ETFs saw substantial net inflows, totaling $35.66 billion in 2024, far surpassing initial projections. The market's most prominent Bitcoin ETF, BlackRock’s iShares Bitcoin Trust ETF (IBIT), led the charge, pulling in a massive $37.31 billion in net inflows. Other notable players included Fidelity's Wise Origin Bitcoin Fund (FBTC) with $11.84 billion, ARK 21Shares Bitcoin ETF (ARKB) at $2.49 billion, and the Bitwise Bitcoin ETF (BITB) which secured $2.19 billion, according to data from Farside Investors.

This surge in investments dramatically exceeded early industry estimates. Galaxy Digital’s research head, Alex Thorn, had originally forecasted $14 billion in net inflows for the first year. However, as 2024 unfolded, these numbers proved much higher, reflecting the growing appetite for spot Bitcoin exposure.

Despite the impressive year, Bitcoin ETFs experienced a dip toward the end of the year. Since December 19, the sector saw $1.33 billion in outflows, with five of the last six trading days reporting negative inflows. The IBIT ETF, in particular, faced a significant outflow of $188.7 million on December 24, signaling a potential cooling off in short-term demand.

Retail Investors Drive Demand, Institutions Expected to Ramp Up in 2025

An October 2024 report from Binance revealed that nearly 80% of the demand for spot Bitcoin ETFs came from retail investors, as opposed to institutional buyers. However, industry analysts anticipate that institutional involvement will increase in 2025. According to Matt Hougan, Chief Investment Officer at Bitwise, the launch of more clearinghouses for spot Bitcoin ETF trading is expected to encourage institutional investors to enter the space in the coming year.

This potential shift in institutional interest is a major factor behind Bitwise’s optimistic $200,000 Bitcoin price forecast for 2025, with VanEck projecting Bitcoin could surpass $180,000.

Ether ETFs Close the Year Strong with $2.68 Billion in Net Inflows

Spot Ether ETFs also saw substantial growth in 2024, closing the year with $2.68 billion in net inflows since their launch on July 23. Notably, excluding outflows from the converted Grayscale Ethereum Trust ETF (ETHE), the total net inflows for Ether ETFs would rise to $6.29 billion.

The iShares Ethereum Trust ETF (ETHA) by BlackRock led the Ether ETF pack, with $3.52 billion in net inflows. The Fidelity Ethereum Fund (FETH) followed closely behind with $1.56 billion, while the low-fee Grayscale Ethereum Mini Trust ETF (ETH) secured $608.1 million in net inflows. The Bitwise Ethereum ETF (ETHW) also passed the $400 million milestone, indicating strong investor interest across a variety of Ethereum-based products.

Ether's Performance and Future Expectations

While Ethereum's performance in 2024 did not quite match the momentum of Bitcoin or Solana (SOL), analysts are optimistic about its prospects for 2025. Bitwise expects Ether to rebound, with the price potentially reaching $7,000 next year. Hougan and Bitwise’s Bitcoin research head, Ryan Rasmussen, attribute this anticipated growth to increasing activity on Ethereum’s layer 2 solutions, the surge in spot Ether ETF investments, and the broader expansion of stablecoins and real-world asset tokenization on the Ethereum network.

A Strong Start, with Eyes on the Future

The first year of spot Bitcoin and Ether ETFs has demonstrated impressive growth and demand, setting the stage for even greater involvement from institutional investors and broader adoption of these digital assets. As the crypto market continues to mature, these investment products provide a bridge between the traditional financial system and the rapidly evolving world of cryptocurrencies. With analysts predicting further growth in 2025, the future of spot Bitcoin and Ether ETFs looks promising, signaling that the intersection of crypto and traditional finance is poised for continued expansion.