Spot Bitcoin and Ether ETFs Show Strength Despite Market Downturns

Digital asset investment products saw $308 million in net inflows last week despite a $576 million single-day outflow.

Spot Bitcoin ETFs in the United States attracted a record $35.66 billion in net inflows during 2024, surpassing initial industry estimates and setting a new milestone for the digital asset class.

These figures, which were unveiled by ETF.com on December 29, indicate a remarkable shift in investor sentiment toward cryptocurrencies, particularly Bitcoin. Notably, these inflows far exceeded Galaxy Digital’s earlier estimate of $14 billion.

Among the leading Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust ETF (NYSE Arca: IBIT) emerged as the clear frontrunner, garnering an impressive $37.31 billion in net inflows throughout the year. This ETF, which tracks the price of spot Bitcoin through physically settled futures contracts, experienced a strong demand from both retail and institutional investors.

Following closely behind was Fidelity’s Wise Origin Bitcoin Fund (NASDAQ: FBTC) with a total of $11.84 billion in net inflows during 2024. This ETF, which provides investors with exposure to the performance of BTC less certain expenses, also experienced a strong demand throughout the year.

Other notable contributors to the overall inflows included ARK’s 21Shares Bitcoin ETF (NYSE Arca: ARCB), which added an additional $2.49 billion, and the Bitwise Bitcoin ETF (NYSE Arca: BITW), which reported net inflows of $2.19 billion during this period.

However, despite these strong annual inflows, Bitcoin ETFs experienced a total of $1.33 billion in net outflows since December 19, as reported by ETF.com on December 29. Five of the final six trading days recorded net outflows, with IBIT experiencing a single-day outflow of $188.7 million on December 24.

According to ETF.com, retail investors drove nearly 80% of the demand for Bitcoin ETFs throughout the year. However, analysts expect institutional interest to increase in 2025 with improved clearinghouse infrastructure.

Meanwhile, market forecasts predict that Bitcoin prices could rise to as high as $200,000 by 2025, with a more conservative estimate being around $180,000. These projections, which were reported by Finbold on December 28, suggest that BTC is poised to experience another year of significant price appreciation.

Spot Ether ETFs Reach $2.68 Billion Growth

Spot Ether ETFs experienced a strong growth in the second half of 2024, accumulating a total of $2.68 billion in net inflows since their July debut, as reported by ETF.com on December 29. These ETFs, which provide investors with exposure to the price of spot Ether, experienced a relatively strong demand from both retail and institutional investors throughout the year.

Among the leading Ether ETFs, BlackRock’s iShares Ethereum Trust ETF (NYSE Arca: IETH) led the inflows with an impressive $3.52 billion. This ETF, which tracks the price of spot Ether through physically settled futures contracts, experienced a strong demand from both retail and institutional investors throughout the year.

Following closely behind was Fidelity’s Ethereum Fund (NASDAQ: FETH) with a total of $1.56 billion in net inflows during 2024. This ETF, which provides investors with exposure to the performance of ETH less certain expenses, also experienced a strong demand throughout the year.

Other notable contributors to the overall inflows included Grayscale’s Ethereum Mini Trust and Bitwise Ethereum ETF, which garnered inflows of $608.1 million and over $400 million, respectively.

Although Ether underperformed Bitcoin in 2024, analysts foresee a rebound in 2025. Factors such as Ethereum Layer 2 developments and increasing ETF flows are expected to boost prices. Analysts project that Ether’s price could reach $7,000, driven by tokenized real-world assets and growing adoption.

Spot Bitcoin and Ether ETFs Show Strength

Digital asset investment products saw a net inflow of $308 million last week despite a single-day outflow of $576 million on Friday. Market reactions to the Federal Reserve’s hawkish stance triggered outflows of over $1 billion on the final two days of the week.

Bitcoin remained resilient with inflows of $375 million, while multi-asset products suffered losses of $121 million. Among cryptocurrencies, Ether maintained its growth momentum with inflows of $51 million, offsetting Solana’s outflows of $8.7 million.

Altcoins such as XRP, Horizen, and Polkadot attracted smaller but notable investments. Total assets under management for digital asset ETPs declined by a modest 0.37%, highlighting the resilience of these products compared to previous downturns.