A monthly column on the crypto markets and ETF/ETP flows, brought to you by CoinDesk Indices, Trackinsight and ETF Express.
Joshua de Vos, Research Lead, CoinDesk, writes that January extended the strong momentum from late 2024, with digital asset investment products continuing to attract significant capital inflows.
Bitcoin remained the dominant force, with the CoinDesk Bitcoin Price Index closing at USD102,407.50, delivering a 9.63 per cent return for the month. Total bitcoin ETF and ETP inflows reached USD5.25 billion, reinforcing its position as the preferred institutional asset, with volumes of USD4.12 billion. The iShares Bitcoin Trust ETF (IBIT) led in flows, securing USD2.82 billion, or 46.5 per cent of the top 10 funds, while Fidelity’s Wise Origin Bitcoin Fund followed at USD1.29 billion.
Building on bitcoin’s success, ether investment products also saw significant inflows, with USD215.9 million in net flows and USD62.3 million in trading volumes. The iShares Ethereum Trust ETF pulled in USD550.5 million, highlighting increasing institutional interest. Meanwhile, Ripple (XRP) and Solana (SOL) products recorded USD114.4 million and USD29.1 million in inflows, respectively. Despite SOL-based products seeing higher average daily volumes (USD13.4 million) than XRP (USD7 million), flows remained more concentrated in XRP, signalling stronger holding patterns.
The United States dominated digital asset investment flows, accounting for USD5.51 billion, or 85.1 per cent of total volume market share. Canada followed with USD80.5 million, while Switzerland led European markets with USD193.3m in inflows. Currency-wise, USD-denominated products accounted for 90.5 per cent of total volumes, reflecting the continued primacy of US-based investment vehicles in global crypto markets.
The broader market saw mixed performance in January. The CoinDesk 20 Index (CD20) returned 15.86 per cent, outperforming bitcoin, with XRP (+45.9 per cent), LINK (+25.9 per cent), and XLM (+24.7 per cent) among the top gainers. Meanwhile, the CoinDesk 80 Index (CD80) fell 8.55 per cent, reflecting underperformance in smaller-cap assets, where RAY (+46.0 per cent), LDO (+32.0 per cent), and JUP (+26.9 per cent) led gains, while RUNE (-54.9 per cent), BOME (-46.8 per cent), and FTT (-41.7 per cent) suffered sharp losses.
Looking ahead, evolving regulatory frameworks continue to shape institutional participation in digital asset markets. While momentum may fluctuate, digital asset investment products are demonstrating sustained investor engagement, particularly among institutional investors seeking regulated exposure to the asset class.
Data Sources:
TrackInsight (All ETF and ETP Data): https://www.trackinsight.com/services/data-services
CoinDesk (XBX, Centralised Exchange Data): https://indices.coindesk.com/indices; https://www.coindesk.com/price
Disclaimer: TrackInsight considers flows from an ETF’s perspective, treating the fund’s first AUM upon listing as its initial inflow, which may differ from other sources that account for pre-listing activity or conversions.
