Record-Breaking ETF Inflows Propel Q4 Crypto Surge

Bitcoin spot ETFs attracted record institutional capital in the fourth quarter of 2024, helping drive the broader crypto market to unprecedented heights, according to Hashdex’s latest Market Pulse report .

The surge in institutional adoption through ETF products signals a dramatic shift in how traditional finance views cryptocurrencies, with the quarter’s $16.3 billion in bitcoin ETF inflows representing the largest ETF launch in U.S. stock market history—a milestone that could pave the way for broader mainstream acceptance.

The quarterly analysis, authored by crypto asset manager Hashdex’s research team led by head of research Pedro Lapenta, reveals that combined ETF inflows reached their highest levels of the year in the fourth quarter.

The strong ETF momentum helped push bitcoin up 47.1% during the quarter, reaching a record high of $108,200 on Dec. 17, according to the report.

Michigan’s pension fund became the first of its kind to invest in Ethereum ETFs , following its earlier bitcoin ETF investments, according to Hashdex’s analysis.

Institutional ETF Adoption Broadens

Ethereum exchange-traded funds also saw renewed demand following Trump’s election victory, closing the quarter with approximately $3.2 billion in net inflows after experiencing almost $500 million in net outflows during the third quarter, the report stated.

The Nasdaq Crypto Index, meanwhile, recorded its strongest quarters ever, ending the year with a 47.9% return and significantly outperforming traditional market indices, according to the report.

On Dec. 30, the second phase of the European Union’s Markets in Crypto-Assets Regulation took effect, setting stricter licensing standards for crypto-assets service providers and bolstering trust in Europe’s crypto market, Hashdex reported.

The institutional momentum helped bitcoin surpass both silver and Saudi Arabian Oil Company Aramco to become the world’s seventh-most-valuable asset by market capitalization, while pension funds are expected to further impact the crypto ETF markets in the coming months, according to the report.