Crypto-based financial products began 2025 on a high note, according to CoinShares’ latest market update, published on January 6.
The European asset manager reported that $585 million was invested in digital asset products during the first three days of the year. However, net outflows for the full week, which included the final two trading days of 2024, totalled $75 million.
CoinShares’ Head of Research, James Butterfill, highlighted that 2024 ended with a record $44.2 billion in inflows, nearly four times the previous high of $10.5 billion set in 2021. U.S. spot-based exchange-traded products (ETPs) accounted for the entire $44.4 billion total, while markets in Switzerland saw $630 million in inflows. Conversely, Canada and Sweden posted outflows of $707 million and $682 million, respectively, as investors pivoted to U.S. products or took profits.
The asset manager also reported that Bitcoin kept its impressive run while Ethereum rebounded strongly in late 2024. Bitcoin led with $38 billion in inflows, securing 29% of total assets under management (AUM). Short-Bitcoin products saw modest inflows of $108 million, while Ethereum rebounded with $4.8 billion in late 2024—outpacing Solana’s $69 million. Altcoins collectively accounted for $813 million, representing 18% of the total AUM.
Butterfill also observed the increased activity in the U.S. crypto ETFs market despite lower trading volumes might been fueled by Federal Reserve Chair Jerome Powell’s latest comments hinting at a September rate cut.
Notably, there have been very bullish projections for the crypto market in 2025. Another asset manager, Bitwise, projected in late December 2024 that Bitcoin could reach $500,000, Ethereum $7,000, and Solana $750 by the end of 2025. The firm also predicted that 2025 would see significant crypto IPOs, including that of Circle, Kraken, and Chainalysis, thanks to rising investor demand, increased institutional interest, and a favourable regulatory environment.
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