tl;dr
Cryptocurrency funds, led by Bitcoin and Ethereum ETFs, gained $585 million in assets in the first three days of 2025 after a profitable year-end. A report from CoinShares reveals that crypto-based exchange-traded products saw a record $44 billion in inflows in 2024. Bitcoin funds comprise 29% of as...
Cryptocurrency funds, led by Bitcoin and Ethereum ETFs, gained $585 million in assets at the start of 2025, following a record-setting year for crypto-based exchange-traded products, with Bitcoin funds now accounting for 29% of assets under management.
Bitcoin ETF inflows have slowed after the hawkish December FOMC meeting, but traders overwhelmingly expect the Fed to keep rates the same, with potential bullish price action leading up to President-elect Donald Trump's inauguration on January 20. Cryptocurrency funds, led by Bitcoin and Ethereum ETFs, gained $585 million in assets in the first three days of 2025 after a profitable year-end. A report from CoinShares reveals that crypto-based exchange-traded products saw a record $44 billion in inflows in 2024. Bitcoin funds comprise 29% of assets managed by the European firm. Bitcoin ETF issuers witnessed $908 million in shares sold on Friday. Analysts are closely watching Bitcoin's performance at the end of January, with expectations affected by the recent FOMC meeting and global liquidity conditions.
The CME Group FedWatch Tool indicates expectations of unchanged rates, with potential limited macroeconomic impact on Bitcoin. Analysts anticipate bullish price action leading up to President-elect Donald Trump's inauguration, recommending balanced exposure to Bitcoin and Ethereum.
Cryptocurrency funds, predominantly led by Bitcoin and Ethereum ETFs, have added $585 million worth of assets in the first three days of 2025 after ending the year with a big round of profit-taking and outflows. The strong start comes off the back of a record-setting year for crypto-based exchange-traded products, according to a new report from digital asset manager CoinShares. All told, $44 billion worth of assets flowed into such funds—more than four times the previous record from 2021, wrote CoinShares Head of Research James Butterfill. Bitcoin funds now account for 29% of the assets under management being tracked by the European firm. On Friday alone, Bitcoin ETF issuers saw $908 million worth of shares sold, according to data from Farside Investors. "Bitcoin's performance at the end of January will be a critical indicator," wrote 10x Research CEO Markus Thielsen, in a note to investors. "Following the hawkish December FOMC meeting, Bitcoin ETF inflows have notably slowed, compounded by less favorable global liquidity conditions."
With 23 days to go, the CME Group FedWatch Tool shows that traders overwhelmingly expect that the Fed will keep rates the same. The CME tool uses derivatives trading data to estimate the outcome investors expect from upcoming Federal Open Markets Committee meetings. Even if it does, it may not be a huge macroeconomic indicator for Bitcoin. For a while, each FOMC meeting that ended with no adjustment to the Fed's key interest rate was calamitous for the price of Bitcoin. But since the Fed finally lowered rates in September—the first time in four years —the effect on the price has been less pronounced.
Still, BRN analyst Valentin Fournier believes that any bullish price action that coincides with President-elect Donald Trump's inauguration later this month could be followed by consolidation. "Since Christmas, Bitcoin has been on a strong upward trajectory. With no negative news on the horizon, this trend is likely to persist until Trump’s inauguration on January 20," he wrote. "At that point, a pullback may occur unless market expectations are met. We recommend maintaining substantial exposure to digital assets, with a balanced allocation between Bitcoin and Ethereum based on their respective market caps."