Nearly 80% of Bitcoin ETF orders come from retail, but industry analysts expect institutional demand to increase in 2025.
By 2024, Bitcoin’s net inflows will reach $35.66 billion, far exceeding industry expectations, while spot Ethereum ETFs are performing strongly, with net inflows of $349.3 million in the past four trading days, adding $2.68 billion to its value since launch.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the way with a net inflow of $37.31 billion, while Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) saw net outflows of $11.84 billion and $2.49 billion, respectively, rounding out the top three.
The net outflows fell short of Galaxy Digital research director Alex Thorn’s estimate of $14 billion in the first quarter.
However, spot Bitcoin ETFs didn’t end the year on a strong note, with $1.33 billion in outflows as of Dec. 12. 19.
Five of the past six trading days have seen net outflows, with IBIT seeing the largest outflow of $188.7 million on December 24.
A report on October 25 from cryptocurrency exchange Binance found that nearly 80% of demand for Bitcoin ETF shares came from retail, not institutional, investors. However, industry analysts like Bitwise Chief Investment Officer Matt Hougan predict that more institutional investors will enter the market by 2025 as more Bitcoin ETF spot trading platforms come online.
This is one of the drivers behind Bitwise’s bullish prediction that Bitcoin prices will hit $200,000 by 2025, while VanEck predicts that Bitcoin prices will top $180,000.
Ethereum ETFs are performing strongly
According to Farside Investors, the Ethereum product has raised $2.68 billion by 2024 since its launch on July 23.
Excluding the outflows from the recently converted Grayscale Ethereum Trust ETF (ETHE), the figure is $6.29 billion.
BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity Ethereum Fund (FETH) generated net inflows of $3.52 billion and $1.56 billion, respectively. The low-cost Greyscale Ethereum Mini Trust ETF (ETH) is third with net inflows of $608.1 million, while the Bitwise Ethereum ETF (ETHW) has topped $400 million.
Currently, ETH’s performance is behind Bitcoin and Solana Sol Items fall $194.87
Bitwise predicts a rebound in 2024 and a peak of $7,000 in 2025.
Hougan and Bitwise’s head of Bitcoin research, Ryan Rasmussen, said that growth is expected to increase Ethereum layer 2 operations, increase Ethereum ETF spot trading, and “significant growth” in in the symbol of stablecoins and global assets.
