December marked the conclusion of an extraordinary year for the digital asset industry, characterised by record-breaking bitcoin ETF activity, exceptional market performance, and significant regulatory milestones. Aggregate yearly volumes on centralised exchanges reached an all-time high of $75.8 trillion, surpassing the previous record of $65.1 trillion set in 2021. This surge in volumes, combined with unprecedented ETF activity, highlights the influx of new capital into the digital asset sector.
Bitcoin was one of the standout performers of 2024. According to the XBX reference rate, Bitcoin recorded a 121% price increase, closing the year at $93,412.18. This performance coincided with $68 billion in total inflows into bitcoin-related ETFs and ETPs, where Bitcoin maintained an 81% market share among single-asset indices for the top four digital assets: BTC, ETH, SOL, and XRP, according to data from TrackInsight. Amongst BTC products, the iShares Bitcoin Trust (IBIT) led in terms of AUM, reaching $51.7 billion by year-end. Moreover, it attracted $37.5 billion in net inflows, representing 44% of all tracked inflows for the year. Grayscale’s GBTC followed with $19.2 billion in AUM, while Fidelity’s FBTC ranked third with $18.8 billion. Overall, US spot bitcoin ETFs amassed over $105 billion in AUM by the close of 2024, solidifying their success in their inaugural year.
Beyond bitcoin, the broader market also witnessed a record year for investment product activity. Ethereum-focused ETFs and ETPs generated significant inflows following the debut of spot Ether ETFs in the United States. Ethereum products attracted $14.4 billion in yearly inflows, representing 17% of single-asset index flows among the top four. XRP saw $606 million in net inflows, or 7% of the top-four flows, despite the absence of spot ETF approvals in the US. SOL-based products saw only $55 million in net inflows, despite outperforming XRP products in average daily volumes ($9 million vs $7 million), suggesting stronger holding patterns among XRP investors throughout the year.
Regionally, the United States dominated activity, with ETFs and ETPs in the region recording $84 billion in inflows, representing 98% of global flows. APAC and Europe followed with $1.4 billion and $323 million, respectively. This distribution underscores the dominance of the US market and the early-stage adoption in other regions, which have yet to challenge the US’s lead meaningfully.
December alone saw $8 billion in total inflows, reflecting sustained investor interest through year-end. Digital asset trading volumes on centralised exchanges in December reached a new monthly high of $11.3 trillion, according to CoinDesk. Notably, December diverged from the trend of Bitcoin dominance, with Ethereum’s share of monthly net flows rising to nearly 40%, compared to its 17% share for the year, reaching $3.2 billion.
Looking ahead to 2025, the incoming Trump administration is expected to provide greater regulatory clarity for digital assets—an advancement that could cultivate a more favourable environment for digital asset companies operating within the United States. With enhanced regulatory certainty anticipated to reduce risk, spur innovation, and foster a more supportive ecosystem for the ongoing development of digital assets, this clarity may also renew optimism in the sector, particularly if institutional involvement continues to grow at the rate observed in 2024.
Data Sources:
TrackInsight (All ETF and ETP Data): https://www.trackinsight.com/services/data-services
CoinDesk (XBX, Centralised Exchange Data): https://indices.coindesk.com/indices; https://www.coindesk.com/price
Disclaimer: TrackInsight considers flows from an ETF's perspective, treating the fund's first AUM upon listing as its initial inflow, which may differ from other sources that account for pre-listing activity or conversions.
