The Year in Crypto ETFs 2025: Bitcoin, Ethereum Thrive as XRP and More Join the Party
In 2024, the SEC approved spot Bitcoin and Ethereum ETFs, triggering a surge in institutional and retail demand for crypto ETFs. By mid-December, spot Bitcoin ETFs saw $57.7 billion in net inflows, despite occasional large outflows linked to price volatility. Spot Ethereum ETFs attracted $12.6 billion, and new spot ETFs for XRP and Solana debuted, generating $883 million and $92 million in net inflows respectively. Regulatory shifts, including generic listing standards for commodity-based trusts, enabled a wider range of digital asset ETFs, with at least twelve cryptocurrencies gaining immediate eligibility. While inflows to smaller asset ETFs like Dogecoin remain modest, index ETFs tracking multiple cryptocurrencies are gaining traction with financial advisors and institutions. Major financial platforms like Vanguard and Bank of America are now facilitating or approving crypto ETF access. Some institutional investors, including university endowments and sovereign wealth funds, have begun allocating to spot crypto ETFs, contributing to market stability. The shift from retail to institutional adoption is expected to foster long-term growth and reduce volatility in the digital asset market.
