The outlook for 2025 remains good; however, performance differs per market. Cryptocurrency exchange-traded products (ETPs) began 2025 with strong inflows, but performance across geographies has been uneven. Crypto exchange-traded products (ETPs) started 2025 on a high note, with $585 million in inflows in the first three days of the year. Despite this early rise, it was unable to offset the $75 million in net withdrawals recorded in the latter days of 2024. However, 2024 was a watershed moment for crypto ETFs, with total inflows reaching a record $44.2 billion, a staggering 320% rise over the previous high of $10.5 billion achieved in 2021.
The introduction of spot Bitcoin ETFs in January 2024 fueled this expansion, which was essential to the United States. These products alone accounted for $38 billion in Bitcoin ETP inflows, or approximately one-third of total Bitcoin assets under management (AUM) in crypto ETPs. Ethereum-based ETPs also experienced strong inflows, totaling $4.8 billion, or 26% of Ethereum’s AUM, a notable gain over the previous year. In addition to Bitcoin and Ethereum, other digital assets such as XRP and multi-asset ETPs contributed to overall growth, with inflows of $438 million and $257 million, respectively. As a result, the total assets in crypto ETPs will be $160.6 billion by the end of 2024.
Despite the increasing inflows, certain regions presented a contrasting picture. The United States remained the leading buyer of cryptocurrency ETPs, with $44.5 billion in inflows, while Canada, Sweden, and Germany saw significant outflows. Canada, in particular, experienced outflows of $707 million, more than offsetting inflows from Switzerland and Brazil.
Looking ahead to 2025, the crypto ETP market remains lively, with investor confidence continuing strong despite the regional variances. Although the early indicators are promising, it’s unclear if this momentum will persist throughout the year.
