Behind the $47.2 billion inflow into crypto ETPs in 2025: Bitcoin cedes ground, altcoins break through

According to CoinShares’ latest report, the global digital asset investment product inflows in 2025 are approximately $47.2 billion, slightly below the $48.7 billion in 2024, but still at a historical high. More notably, there has been a significant shift in capital flows this year: institutional funds are beginning to move away from Bitcoin and toward some strong altcoins. This “asset allocation shift” reflects a profound adjustment in market structure.

Total Volume Remains High but US Share Declines

Looking at global inflow scale, although 2025 did not surpass the record set in 2024, it remains near a historical high, indicating that institutional and long-term investors’ willingness to allocate to crypto assets remains solid. This stability is particularly noteworthy given the multiple fluctuations experienced throughout the year, yet both the start and end of the year showed strong performance.

Regionally, the US continues to be the core inflow market for global crypto funds, but its dominant position is loosening. In 2025, the US saw inflows of about $47.2 billion, a decrease of approximately 12% compared to 2024, indicating that funds are beginning to diversify into other markets.

Europe and Canada Show Clear Reversals

Even more interestingly, some markets have experienced dramatic changes:

This reversal reflects a recovery in investment sentiment in parts of North America and Europe, possibly driven by improved regulatory environments and increased institutional recognition.

Key Shifts in Asset Allocation

The most notable changes occurred at the asset level. Bitcoin, as the flagship of crypto assets, saw a significant slowdown in capital inflows. In 2025, Bitcoin is expected to attract only $26.9 billion, a 35% decrease year-over-year, indicating that some funds are choosing to wait or reallocate at high price levels.

In contrast, some altcoins emerged as the biggest winners in 2025:

Ethereum’s Strong Performance

Ethereum’s capital inflow reached $12.7 billion, up 138% year-over-year. This growth far exceeds that of Bitcoin, reflecting increasing institutional recognition of Ethereum’s ecosystem and long-term value. According to relevant data, ETH’s current market cap is $38.122 billion, accounting for 12.13% of the total market value, with a 24-hour trading volume of $1.709 billion, providing ample liquidity to support large capital inflows.

XRP and Solana’s “Explosion”

XRP and Solana performed even more remarkably, with annual capital inflows increasing by approximately 500% and 1000%, respectively, reaching $3.7 billion and $3.6 billion. These two projects have become the most representative assets in the “fund rotation.”

Clear Differentiation Within Altcoins

It is important to note that not all altcoins benefited. Aside from ETH, XRP, and SOL, the overall capital inflow for other altcoins decreased by about 30% year-over-year, totaling only $318 million. This indicates that capital has become more concentrated, favoring leading projects with liquidity, narrative support, and a solid ecosystem.

Three Key Signals

The capital flows in 2025 exhibit three clear characteristics:

• High Total Volume: Institutional allocation enthusiasm for crypto assets remains strong
• Regional Structural Improvement: Capital returning to Europe and Canada reflects a recovery in investment sentiment
• Asset Allocation Shift: Funds are moving from Bitcoin to some strong altcoins, increasing concentration in top projects

Implications for 2026

These trends provide important insights into the market structure for 2026. First, the steady inflow of institutional funds indicates a long-term demand for crypto asset allocation; second, the continued attraction of top altcoins suggests the market is seeking new growth drivers; finally, capital is concentrating in projects with strong ecosystems and ample liquidity, which could further widen the gap between leading projects and others.

Summary

In 2025, the $47.2 billion inflow into global crypto ETPs not only demonstrates ongoing institutional interest in crypto assets but also reflects a market structure adjustment. The shift of funds from Bitcoin to Ethereum, XRP, Solana, and other projects, along with the recovery of European markets, signals that the crypto market is entering a new phase. For investors, the key is to identify which projects can continue to attract sustained institutional inflows, which may be more valuable than chasing short-term price fluctuations.