BlackRock takes the lead, but there are concerns about year-end outflows: US crypto ETFs to attract $32 billion in 2025

The US crypto ETF market in 2025 delivered an impressive performance: a total net inflow of approximately $31.77 billion throughout the year, with institutional allocation demand remaining strong. However, behind this achievement lies a warning sign—continuous outflows since the end of the year suggest the market is entering a correction phase.

2025 Performance Report: Slowing Growth but Still Robust

Although there was a correction in the crypto market at the end of 2025, investor enthusiasm in the US has not waned. The net inflow of $31.77 billion for the year reflects sustained demand from institutional investors for crypto asset allocations.

Product Level: BTC Still Dominates, ETH Performs Remarkably

Spot Bitcoin ETFs remain the main source of capital, but growth has significantly slowed:

• In 2025, net inflows into spot BTC ETFs reached $21.4 billion, down about 40% from $35.2 billion in 2024
• The first full trading year of spot ETH ETFs showed impressive performance, attracting $9.6 billion, approximately four times the amount in 2024
• Since the listing of spot SOL ETFs at the end of October, a total of $76.5 million has flowed in, demonstrating the appeal of new products

This data indicates a trend: investors are no longer solely chasing Bitcoin but are seeking allocation opportunities across a broader range of crypto assets.

Issuer Level: BlackRock’s Absolute Monopoly

In the competition among issuers, BlackRock’s advantage has shifted from leadership to monopoly:

BlackRock’s IBIT size is approximately five times that of Fidelity’s FBTC and ranks among the top in overall ETF net inflows. Notably, in the Ethereum ETF space, BlackRock’s ETHA also dominates, with total inflows of about $12.6 billion.

In stark contrast is the predicament of Grayscale’s GBTC—about $3.9 billion in outflows for the year. Once a giant in crypto funds, its competitiveness has clearly declined in the era of spot ETFs.

Year-End Outflows: Signal of Adjustment or Seasonal Fluctuation?

As 2025 comes to a close, capital flows have shown a marked change. According to the latest data:

• December 31: Bitcoin spot ETF net outflow of $34.8 million, after seven consecutive days of outflows before a rebound
• January 1: Bitcoin spot ETF again net outflow of $34.8 million; Ethereum spot ETF net outflow of $72.05 million
• BlackRock’s IBIT saw a single-day outflow of $99.048 million on December 31, with an additional $21.508 million outflow on the same day

This persistent outflow phenomenon contrasts sharply with the hot market mid-year. Glassnode data indicates recent weakening demand for Bitcoin and Ethereum ETFs, which may slow capital inflows at the start of 2026.

From a market perspective, year-end outflows could reflect multiple factors: profit-taking at year-end, institutional portfolio adjustments, crypto market price corrections (BTC fell 1.01% on January 1), and investors’ cautious attitude toward short-term trends.

Outlook for 2026: Wave of ETF Launches Ahead

Despite the outflows at year-end, the long-term outlook remains optimistic. Under the SEC’s new listing standards, 2026 may see a concentrated wave of crypto ETF launches.

Bitwise expects over 100 new crypto ETFs to debut next year, greatly expanding investor choices. However, analysts also warn that some products may exit the market gradually in 2026–2027 due to insufficient demand. In other words, market segmentation will intensify, and the pattern of strong players consolidating their dominance may become more apparent.

From this perspective, BlackRock’s leading position is unlikely to be challenged in the short term, but the long-term healthy development of the market requires more high-quality products and issuer participation.

Summary

The crypto ETF market in 2025 is a story of “ice and fire”: a net inflow of $31.77 billion throughout the year indicates strong institutional demand, but year-end outflows and slowing growth suggest the market is entering a new adjustment phase. BlackRock’s absolute dominance has been established, but this also means the market is overly concentrated, with associated risks.

The launch of over 100 new ETFs in 2026 presents both opportunities and challenges. The key is whether these new products can truly meet investors’ diverse needs rather than becoming “zombie ETFs.” For investors, while enjoying the convenience of ETFs, it’s also important to recognize the reality of increasing market segmentation—choosing the right products and issuers is more crucial than blindly chasing hot topics.