Global investment in digital assets has reached a staggering $44.2 billion in inflows during 2024, marking a nearly quadrupling of the previous record of $10.5 billion set in 2021, according to a recent report by CoinShares.
This impressive growth is largely attributed to the advent of U.S. spot-based ETFs, which have accounted for an overwhelming 100% of the inflows. This shift has reshaped how investors approach digital assets, making the environment more conducive to large-scale participation.
James Butterfill, the Head of Research at CoinShares, expressed the importance of this achievement, saying that the record-breaking inflows highlight the profound influence of U.S. spot-based ETFs on global investment patterns.
Focusing on Bitcoin (BTC/USD), it dominated the inflows with a remarkable $38 billion, representing 29% of the total assets under management (AuM). Despite volatility and significant price surges, even short-bitcoin investment products managed to attract $108 million, showcasing a range of sentiments among investors.
Ethereum (ETH/USD) also made headlines, especially in the latter part of 2024, with an impressive $4.8 billion in inflows. This figure is 2.4 times its total from 2021 and a jaw-dropping 60-fold increase compared to 2023. Butterfill pointed out that Ethereum’s performance in late 2024 signifies its shifting role within the digital asset space, sparking renewed interest among investors.
Turning to altcoins, excluding Ethereum, they saw more cautious inflows totaling $813 million, which accounts for 18% of AuM. Within this category, Solana (SOL/USD) attracted $69 million, representing just 4% of its overall AuM.
The global landscape displayed mixed trends: Switzerland welcomed $630 million in inflows, while Canada and Sweden faced substantial outflows of $707 million and $682 million, respectively. This pivot indicates a trend where investors are gravitating towards U.S.-based products or cashing in on profits.
Looking ahead, the early days of 2025 seem promising with $585 million in inflows recorded within the first three days of the year, despite experiencing net outflows of $75 million within the last two trading days of 2024. This suggests that while the market may be adjusting, the interest in digital assets continues to flourish.
In a landscape often characterized by uncertainty, these numbers illustrate a growing confidence and a clear shift in how institutional investors view digital assets like Bitcoin, Ethereum, and Solana. With the support of innovative products like spot-based ETFs, the future appears bright for anyone looking to navigate their way through this evolving investment avenue.