BTC ETF may attract $35 billion in capital inflows in 2025. Will Crypto ETF become the new favorite?

ETF Store CEO Nate Geraci emphasized that Crypto asset-related ETFs topped the list in terms of inflows in 2024, and the eight largest funds launched this year all belong to the industry.

The list includes four spot BTC ETFs, two Ethereum ETFs, and two micro-strategy ETFs.

These eight funds have outperformed all of the approximately 740 ETFs in the past 12 months.

BlackRock's spot BTC ETF IBIT topped the list with more than $37 billion in positive net flows in less than a year.

IBIT also became the best ETF to be launched in history, accumulating nearly $53 billion in assets under management (AUM) in 11 months.

Fidelity’s spot BTC ETF FBTC ranked second with a total of $12.2 billion in inflows, while BlackRock’s spot Ethereum ETF ETHA ranked third with $3.5 billion in positive net inflows.

This highlights the difference in flows between BTC and Ethereum ETFs, as the largest Ethereum ETF has 11 times less inflows than the largest BTC fund.

The other two BTC ETFs on the list are ARK 21shares’ ARKB and Bitwise’s BITB, which recorded inflows of $2.6 billion and $2.2 billion, respectively.

The first MicroStrategy-related ETF (YieldMax’s MSTY) recorded the eighth-largest net inflows at nearly $1.8 billion, followed by the second Ethereum ETF on the list (Fidelity’s FETH) with net inflows of just over $1.5 billion.

Defiance’s MSTX rounded out the top eight with $1.4 billion in inflows, becoming the second MicroStrategy-related ETF.

Analysts are optimistic about the prospects for U.S. Crypto ETFs.

Bitwise estimates that BTC ETFs alone will attract $35 billion in inflows next year, accumulating more than $70 billion in less than two years.

Meanwhile, Bloomberg ETF analysts Eric Balchunas and James Seyffart expect a wave of new Crypto asset-related ETFs to emerge next year.

In addition, Geraci recently predicted that the regulatory environment will become more favorable to the industry in the coming months, making it possible for the Solana (SOL) ETF to be approved in 2025.

According to Farside Investors, spot BTC ETFs traded in the U.S. recorded $12.1 billion in inflows between November 6 and December 27, accounting for 34% of their year-to-date flows.

The impact on spot Ethereum ETFs was even more significant, which recorded $3.2 billion in inflows during the same period. These flows were enough to reverse more than $500 million in negative net flows for these funds, which now total nearly $2.7 billion.