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The U.S. crypto market isn’t wasting any time in 2025. In just three days, investors poured $585 million into new crypto products, according to CoinShares, a leading digital asset investment firm.
The strong start follows a record-breaking 2024 when investors poured $44.2 billion into crypto investment products. This amount was nearly four times higher than the previous record of $10.5 billion set in 2021.
“Spot Bitcoin ETFs in the U.S. were the driving force behind this surge,” said James Butterfill, head of research at CoinShares. These new investment products made it easier for traditional investors to buy Bitcoin through regular stock market accounts.
The shift toward U.S. products has created ripple effects worldwide. While Switzerland gained $630 million in new investments, other countries saw money flowing out. Canada lost $707 million, and Sweden lost $682 million as investors moved their money to U.S.-based funds.
Bitcoin remained the most popular choice for investors in 2024, attracting $38 billion and making up 29% of all managed crypto assets. Ethereum, the second-largest cryptocurrency, also saw growing interest late in the year, bringing in $4.8 billion.
Market experts are monitoring several key January events that could affect crypto prices. Markus Thielen from 10x Research expects prices to rise early in the month but dip before January 15, when new inflation numbers are released.
A good inflation report could boost prices as we approach Trump’s January 20 inauguration, Thielen wrote in a recent report. But this upward trend, he added, might slow down as we get closer to the Federal Reserve’s meeting on January 29.
Most market watchers think the Federal Reserve will keep interest rates steady at their next meeting. The CME Group’s FedWatch tool shows an 88.8% chance that rates will stay between 425 and 450 basis points.
Ryan Lee from Bitget Research adds to the optimism, pointing to a $3 billion bounce in stablecoins last week. He also sees the upcoming FTX user compensation of $16 billion as potential rocket fuel for the market.
“The futures market shows promising signs of health, with BTC and ETH funding rates for long positions hovering around an annualized 10%,” Lee said.
Despite the optimistic start to 2025, the market still has its downs. In the last two days of 2024, $75 million flowed out of crypto investments. However, the overall trend points to growing mainstream acceptance of cryptocurrency investments, particularly through regulated U.S. investment products.
