Bitcoin ETFs Surpass ESG Funds With Over $121 Billion Assets  

• Spot Bitcoin ETFs mobilised $4.2bn in assets this year which represents 6% of total ETF assets in 2025. 
• Bitcoin ETFs’ assets under management now stand at more than $121 billion, leading ESG funds, including Vanguard ESG and Fossil Fuel Reserves Free ETF from SPDR. 
• Ethereum and altcoins such as Solana and XRP have not seen the same levels of inflows as Bitcoin ETFs. 

Spot Bitcoin exchange-traded funds (ETFs) are entering 2025 with significant steam, as per Bloomberg’s top ETF analyst Eric Balchunas. Following the record net inflows and highest levels of assets under management in 2024, these fund products are on the right track of expansion; which greatly affects the current U.S. ETF industry.

$4.2 Billion in 2025 Flows Marks a Robust Start

Bitcoin ETFs have already attracted $4.2 billion in net assets this year, which is 6% of total ETF assets this year. Balchunas pointed out on X ( Twitter) that BlackRock’s IBIT, Fidelity’s FBTC, and Ark/21Shares’ ARKB have been the main players. In the year, BlackRock’s Ireland-domiciled institutional investor tax-efficient product, BlackRock’s IBIT, witnessed inflows of more than $2.3 billion, and Fidelity’s Fidelity’s Fund – UK Property, FBTC, received $1.1 billion. These funds now together manage over $121 billion in assets.

Bitcoin ETFs Outpace ESG Funds

Spot Bitcoin ETFs have now come to an aggregate AUM higher than that of ESG exchange-traded funds. This is because the investment managers of major ESG funds including Vanguard ESG U.S. Stock ETF and SPDR S&P 500 Fossil Fuel Reserves Free ETF have $117 billion combined. This means that Bitcoin ETFs are growing in the market since their entry is well-marked.

Furthermore, Balchunas noted that the AUM for spot Bitcoin ETFs is now nearly as high as for gold ETFs. This shows that Bitcoin is gaining acceptance as a store of value by investors institutional and retail.

Ethereum and Altcoin ETFs Lag Behind

As Bitcoin ETFs are doing well, Ethereum and newly launched Altcoin ETFs have not been able to witness similar growth. This year, Ethereum ETFs have attracted $130 million in investments, which is a pittance compared to Bitcoin. Also, applications for altcoin ETFs including Solana, XRP, Litecoin, TRUMP, and Dogecoin have been made but they are still relatively small in the market.

Balchunas emphasized that even with multiple altcoin ETF launches, they are unlikely to challenge Bitcoin’s leading position in the ETF category. He expects altcoin ETFs to generate moderate inflows but not on the scale of Bitcoin funds.

Spot Bitcoin ETFs recorded $188 million in inflows on January 23, marking their sixth consecutive day of positive flows. In January, the funds saw one-day inflows of more than $1 billion on several occasions. Here, a slight dip was seen after the market experienced a reaction to the executive order by the then president, Donald Trump on cryptocurrencies.