In a recent report by CoinShares, it was revealed that institutional investors poured a staggering $44 billion into crypto investment vehicles in 2024, setting a new record for digital asset inflows. Despite some outflows in the final trading days of the year, the overall trend was overwhelmingly positive.
The report stated, “Digital asset investment products saw US$585m of inflows for the first 3 days of this year, although for the full week, which includes the last two trading days of 2024 saw net outflows totaling US$75m.” This marked a significant increase from previous years, with 2024’s inflows almost quadrupling the record set in 2021.
One of the key drivers of this influx of institutional capital was the entrance of US spot-based ETFs, which accounted for 100% of the inflows at US$44.4 billion. Switzerland also saw significant inflows of $630 million, while Canada and Sweden experienced outflows of $707 million and $682 million, respectively. However, CoinShares pointed out that a large portion of these outflows were actually investors moving their funds from Canadian and Swedish products to American digital asset vehicles.
Bitcoin (BTC) continued to dominate the market, attracting $38 billion in inflows and representing 29% of total assets under management (AuM). Despite price fluctuations, bitcoin investment products still saw healthy inflows, albeit slightly lower than in 2024.
Overall, the crypto market is experiencing a surge in institutional interest and investment, signaling a growing confidence in digital assets as a viable investment option. With new records being set and traditional financial institutions increasingly embracing cryptocurrency, the future looks bright for the industry.
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