As the year 2024 draws to a close, United States spot Bitcoin and Ether exchange-traded funds (ETFs) are poised to finish strong, with a staggering $38.3 billion in net inflows expected by the end of December.

Leaders in Net Inflows: BlackRock’s iShares Bitcoin Trust ETF and Fidelity Wise Origin Bitcoin Fund

BlackRock’s iShares Bitcoin Trust ETF (IBIT) is leading the pack with an impressive $37.31 billion in net inflows, followed closely by the Fidelity Wise Origin Bitcoin Fund (FBTC) with $11.84 billion. The ARK 21Shares Bitcoin ETF (ARKB) rounds out the top three with $2.49 billion in net inflows.

Bitwise Bitcoin ETF and Bitwise Ethereum ETF Also See Significant Inflows

The Bitwise Bitcoin ETF (BITB) is also seeing significant inflows, with $2.19 billion in net inflows, while the Bitwise Ethereum ETF (ETHW) recently surpassed the $400 million milestone.

Historical Context: Galaxy Digital’s Research Head Alex Thorn’s Earlier Estimate

Galaxy Digital’s research head Alex Thorn had earlier estimated that the spot Bitcoin ETFs would see around $14 billion in net inflows by the end of 2024. However, with two trading days left to go before the year ends, it is clear that this estimate will be significantly surpassed.

Spot Bitcoin ETF Flow Data from Dec. 19 to Dec. 27

According to Farside Investors, the spot Bitcoin ETFs saw a combined $1.33 billion in outflows from December 19 to 27. This may seem surprising given the strong net inflows for the year as a whole. However, it is worth noting that five of the last six trading days have been net outflows, with IBIT seeing its largest outflow of $188.7 million on December 24.

Retail Demand Dominates Institutional Involvement in Spot Bitcoin ETFs

An October report from Binance found that nearly 80% of demand for spot Bitcoin ETFs had come from retail investors, rather than institutions. However, industry analysts such as Bitwise’s chief investment officer Matt Hougan expect to see more institutional involvement in 2025 when clearinghouses for spot Bitcoin ETF trading become available.

Industry Analyst Expectations for Institutional Involvement in 2025

As mentioned earlier, Bitwise’s chief investment officer Matt Hougan expects to see increased institutional involvement in 2025. This is one of the catalysts behind Bitwise’s bullish $200,000 Bitcoin price estimate for 2025, while VanEck also expects Bitcoin to top $180,000.

Ether ETFs End on a Strong Note

The spot Ether ETFs have seen a total of $2.68 billion in net inflows since their launch on July 23, according to Farside Investors. Excluding outflows from the converted Grayscale Ethereum Trust ETF (ETHE) would bump this figure up to $6.29 billion.

Leaders in Net Inflows: BlackRock’s iShares Ethereum Trust ETF and Fidelity Ethereum Fund

BlackRock’s iShares Ethereum Trust ETF (ETHA) and the Fidelity Ethereum Fund (FETH) lead net inflows at $3.52 billion and $1.56 billion, respectively. The low-fee Grayscale Ethereum Mini Trust ETF (ETH) finished with the third most net inflows at $608.1 million.

Bitwise Expects Ether to Bounce Back in 2025

While Ether has underperformed Bitcoin and Solana in 2024, Bitwise expects it to bounce back in 2025, hitting a high of $7,000. This estimated rise is attributed to increased activity on Ethereum layer 2s, more spot Ether ETF flows, and "massive growth" in stablecoins and real-world asset tokenization.

Additional Reporting by Ciaran Lyons

Ciaran Lyons contributed additional reporting for this article. For more articles like this, subscribe to the Markets Outlook newsletter and get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies.

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