US-based Bitcoin and Ether exchange-traded funds (ETFs) have recorded significant inflows, totaling $38.3 billion in the first year after their launch. Spot Bitcoin ETFs led with $35.66 billion in net inflows, vastly surpassing the initial prediction of $14 billion. BlackRock’s iShares Bitcoin Trust ETF was at the forefront with $37.31 billion over the year. Despite this, Bitcoin ETFs experienced $1.33 billion in outflows as the year ended, with the most significant single outflow of $188.7 million occurring on December 24.
Most of the demand for Bitcoin ETFs has come from retail investors, accounting for nearly 80% according to a report by Binance. However, experts anticipate an increase in institutional investments come 2025 as more infrastructure for trading becomes available.
The spot Ether ETFs concluded the year with a robust $2.68 billion in net inflows since their launch on July 23. Notably, BlackRock’s iShares Ethereum Trust ETF and the Fidelity Ethereum Fund led Ether ETF inflows with $3.52 billion and $1.56 billion, respectively.
While Ether underperformed against Bitcoin and Solana in 2024, analysis from Bitwise suggests a potential rebound in 2025, projecting Ether could reach heights of $7,000 due to increased activity on Ethereum layer 2 solutions, increased ETF flows, and substantial growth in stablecoins and tokenization of real-world assets.
