By CentBit.Online – Crypto & Blockchain Expert, Bangladesh
The year 2024 marked a groundbreaking phase for cryptocurrency investment products, with U.S. spot Bitcoin ETFs seeing a staggering $35.66 billion in net inflows, far surpassing initial industry projections. Meanwhile, spot Ether ETFs accumulated a strong $2.68 billion in inflows, solidifying their position as a favored asset class since their July 23 debut.
Bitcoin ETFs: A Record-Breaking Year
BlackRock’s iShares Bitcoin Trust ETF (IBIT) dominated the Bitcoin ETF market, recording an impressive $37.31 billion in inflows. Other top contributors included:
- Fidelity’s Wise Origin Bitcoin Fund (FBTC): $11.84 billion
- ARK’s 21Shares Bitcoin ETF (ARKB): $2.49 billion
- Bitwise Bitcoin ETF (BITB): $2.19 billion
These inflows crushed Galaxy Digital’s earlier $14 billion first-year estimate. However, a slight downturn emerged toward the year’s end, with $1.33 billion in net outflows since December 19.
Despite this, retail investors accounted for approximately 80% of Bitcoin ETF demand, as per an October report by Binance. Institutional participation is expected to rise in 2025, driven by expanding clearinghouse infrastructure for spot Bitcoin ETF trading.
Bitcoin Price Predictions for 2025
Industry leaders project further bullish momentum for Bitcoin, with:
- Bitwise’s Matt Hougan: $200,000 price target
- VanEck: $180,000 price target
Ether ETFs Surge, Driven by Institutional Support
Ether ETFs also experienced a remarkable year. BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity’s Ethereum Fund (FETH) led the pack with inflows of $3.52 billion and $1.56 billion, respectively.
Other key contributors included:
- Grayscale’s Ethereum Mini Trust ETF (ETH): $608.1 million
- Bitwise Ethereum ETF (ETHW): Over $400 million
2025 Outlook for Ethereum
Despite underperforming Bitcoin and Solana in 2024, Ethereum is set to rebound in 2025. Analysts point to factors such as:
- Layer 2 expansion
- Growing spot Ether ETF flows
- Tokenization of real-world assets
Price predictions for Ethereum in 2025 range as high as $7,000, according to Bitwise’s Ryan Rasmussen and Matt Hougan.
Digital Asset Investment Trends
Last week saw $308 million in net inflows into digital asset investment products. While significant single-day outflows of $576 million on December 19 affected market sentiment, Bitcoin remained resilient, attracting $375 million in net inflows for the week.
Altcoins also saw notable movements:
- Ethereum: $51 million in inflows
- Solana: $8.7 million in outflows
- XRP, Polkadot, and Horizen: Smaller but significant inflows
Conclusion
The growth of U.S. spot Bitcoin and Ether ETFs in 2024 reflects increasing mainstream acceptance of cryptocurrency as a viable investment asset. With institutional interest poised to expand and favorable regulatory developments on the horizon, 2025 could see even greater adoption and new all-time highs for digital assets.
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Tags: Bitcoin ETFs, Ethereum ETFs, Cryptocurrency Investments, Digital Assets, CentBit Online, Crypto Expert Bangladesh
