2024 Bitcoin, Ether ETFs Success Paves Way for Institutions in 2025

The US Bitcoin and Ethereum exchange-traded funds (ETF) have more than doubled, attracting $38.3 billion in net flows in its first year.

Retail investors were more prominent, tapping 80% of demand, as per the Binance report dated October 25.

Still, industry analysts predict 2025 may be the year the institutions signal an intention to grab a much larger slice of the pie.

Bitcoin ETFs Lead With $35.66 Billion

Bitcoin ETFs made a resounding debut in 2024, amassing $35.66 billion in net inflows, per Soso Value data.

BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the charge, raking in $37.31 billion—singlehandedly eclipsing early estimates by Galaxy Digital, which projected just $14 billion in first-year inflows.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $11.84 billion, while ARK 21Shares Bitcoin ETF (ARKB) rounded out the top three with $2.49 billion.

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Despite this momentum, December saw a dip. There were a combined $1.33 billion in outflows during the last 10 days of trading. IBIT recorded its largest outflow on Dec. 24, losing $188.7 million in a single day.

Ethereum ETFs Close Strong

Ethereum Funds also fared well having $2.68 billion in net inflows since their inception on the 23rd of July.

BlackRock leads with $3.52 billion in its iShares Ethereum Trust ETF (ETHA). Fidelity follows with $1.56 billion tied to the same fund, Fidelity Ethereum Fund (FETH).

Grayscale’s Ethereum Mini Trust ETF (ETH) contributed $608.1 million.

Excluding outflows from the Grayscale Ethereum Trust ETF (ETHE), the net inflows rise to an impressive $6.29 billion. Analysts at Bitwise attribute this strong performance to increased activity on Ethereum Layer 2s and rising interest in real-world asset tokenization.

Retail Drives 2024, Institutions Eye 2025

Retail investors were the main source of this ETF craze, having made up the majority of the inflows in 2024.

Analysts such as Matt Hougan, the chief investment officer at Bitwise Asset Management, believes that institutions will be the ones dominating the markets in the next year 2025.

This shift could be catalyzed by new clearinghouses and improved infrastructure for spot Bitcoin ETF trading. With institutional involvement expected to drive ETFs in 2025, Bitwise has reportedly filed for an ETF focused on Bitcoin standard companies. This will enable investors to back firms holding Bitcoin reserves.

As reported by The Coin Republic, to meet the requirements of the ETF, companies need to own at least 1000 BTCs, and the company’s worth should be $100M and above, with no more than 10% of the shares being privately held.

The success of these ETFs has bolstered optimism for Bitcoin and Ethereum prices. Bitwise projects Bitcoin could hit $200,000 by 2025, supported by growing institutional adoption.

VanEck also shares a similar outlook and predicts that Bitcoin could cross $180,000. For Ethereum, Bitwise expects it to touch $7,000 driven by advancement in the Layer 2 solutions.

The record-breaking $38.3 billion in inflows underscores the rising appeal of digital assets as mainstream financial instruments.

With retail investors paving the way and institutional players preparing to enter the market in 2025, Bitcoin and Ethereum ETFs are poised to play a pivotal role in the next phase of cryptocurrency adoption.