United States-listed exchange-traded funds (ETFs) for Bitcoin and Ether experienced significant growth in their inaugural year, collectively attracting $38.3 billion in net inflows. The vast majority of this demand, approximately 80%, came from retail investors. However, analysts forecast that institutional interest will grow significantly by 2025.
Breaking down the figures, spot Bitcoin ETFs alone amassed $35.66 billion in net inflows, surpassing initial estimates from industry experts. Notably, BlackRock’s iShares Bitcoin Trust ETF led the segment with inflows totaling $37.31 billion, followed by the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF, which drew in $11.84 billion and $2.49 billion, respectively.
In a contrasting trend towards the end of the year, the spot Bitcoin ETFs witnessed $1.33 billion in outflows since December 19. The iShares Bitcoin Trust ETF saw its largest single-day withdrawal on December 24, amounting to $188.7 million.
Turning to Ether, these ETFs reported $2.68 billion in net inflows following their launch on July 23. BlackRock’s iShares Ethereum Trust ETF and the Fidelity Ethereum Fund spearheaded these inflows with $3.52 billion and $1.56 billion, respectively. The Grayscale Ethereum Trust ETF conversion added significant volume, raising the net inflow figures if its data is excluded.
Despite ETH underperforming compared to Bitcoin and Solana in 2024, Bitwise expects a reversal in 2025, projecting it might reach a high of $7,000. This optimism is attributed to increased activities on Ethereum layer 2 networks, enhanced liquidity from spot Ether ETFs, and substantial growth in stablecoin markets and real-world asset tokenization.
