Cryptocurrency exchange-traded products (ETPs) have entered 2025 on a high note, amassing $585 million in inflows within the first three days of the year, according to a report by CoinShares. However, this early momentum wasn't enough to counteract the heavy sell-off that marked the closing days of 2024, resulting in a net outflow of $75 million for the final trading week of the previous year.

Despite the late-year dip, 2024 was a historic year for crypto ETFs, with inflows reaching a staggering $44.2 billion — a 320% jump from the previous record of $10.5 billion in 2021. The January 2024 introduction of spot Bitcoin ETFs in the U.S. was a game-changer, contributing significantly to the inflows, noted James Butterfill, CoinShares’ head of research.

Bitcoin ETPs dominated the market, attracting $38 billion in inflows and representing 29% of the $130 billion in Bitcoin assets under management (AUM). Ether-based ETPs also saw strong performance, ending the year with $4.8 billion in inflows, accounting for 26% of Ether’s $18.6 billion AUM. XRP and multi-asset ETPs also played a role, with $438 million and $257 million in inflows, respectively.

By the end of 2024, the total AUM for crypto ETPs reached $160.6 billion. The U.S. led as the largest buyer, contributing $44.5 billion in inflows, while Canada emerged as the largest seller, recording $707 million in outflows. Other notable sellers included Sweden and Germany, with $682 million and $328 million in outflows, respectively. These losses overshadowed the inflows from Switzerland and Brazil, which brought in $630 million and $234 million.

The new year starts with optimism, but the lingering effects of late 2024 highlight the market's unpredictability.