US Bitcoin and Ethereum exchange-traded funds (ETFs) more than doubled, attracting $38.3 billion in net flows in the first year.
Retail investors were more prominent, taking 80% of the demand, according to a Binance report dated October 25.
Still, industry analysts predict that 2025 could be the year that institutions signal their intention to grab a much bigger piece of the pie.
Bitcoin ETFs lead with $35.66 billion
Bitcoin ETFs made a significant debut in 2024, garnering $35.66 billion in net inflows, according to data from Soso Value.
BlackRock’s iShares Bitcoin Trust ETF ( IBIT ) led the charge, earning $37.31 billion—single-handedly beating early estimates from Galaxy Digital, which projected just $14 billion in first-year inflows.
Fidelity’s Wise Origin Bitcoin Fund ( FBTC ) follows with $11.84 billion, while the ARK 21Shares Bitcoin ETF ( ARKB ) rounds out the top three with $2.49 billion.
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Despite this momentum, December saw a decline. A total of $1.33 billion in outflows were recorded during the last 10 trading days. IBIT recorded its biggest outflow on December 24, losing $188.7 million in one day.
Ethereum ETFs are well closed
Ethereum funds have also fared well with $2.68 billion in net inflows since their launch on July 23rd.
BlackRock leads with $3.52 billion in its iShares Ethereum Trust ETF ( ETHA ). Fidelity follows with $1.56 billion tied to the same fund, Fidelity Ethereum Fund (FETH).
Grayscale’s Ethereum Mini Trust ETF (ETH) contributed $608.1 million.
Excluding outflows from the Grayscale Ethereum Trust ETF (ETHE), net inflows rise to an impressive $6.29 billion. Bitwise analysts attribute this strong performance to increased activity on Ethereum Layer 2s and growing interest in real-world asset tokenization.
Retail Drives 2024, Institutions Eye 2025
Retail investors were the main source of this ETF frenzy, as they accounted for most of the inflows in 2024.
Analysts like Matt Hougan, Chief Investment Officer at Bitwise Asset Management, believe that institutions will be the ones to dominate the markets in the next year 2025.
This shift could be catalyzed by new clearing houses and improved infrastructure for spot Bitcoin ETF trading. With institutional involvement expected to drive ETFs in 2025, Bitwise has reportedly filed for an ETF focused on Bitcoin-standard companies. This will allow investors to support companies that hold Bitcoin reserves.
As reported by The Coin Republic, to meet the requirements of the ETF, companies must own at least 1,000 BTC, and the company value should be $100 million or more, with no more than 10% of the shares being privately owned.
The success of these ETFs fueled optimism for Bitcoin and Ethereum prices. Bitovite projects Bitcoin could reach $200,000 by 2025, supported by increasing institutional acceptance.
VanEck also shares a similar outlook and predicts that Bitcoin could cross $180,000. For Ethereum, Bitwise expects it to reach $7,000 driven by advances in Layer 2 solutions.
Record inflows of $38.3 billion underscore the growing appeal of digital assets as mainstream financial instruments.
With retail investors paving the way and institutional players preparing to enter the market in 2025, Bitcoin and Ethereum ETFs are poised to play a key role in the next phase of cryptocurrency adoption.
