Crypto funds will rake in $47.2 billion by 2025, but Bitcoin is losing ground

XRP and Solana posted massive triple-digit growth in 2025, while Bitcoin-focused crypto investment funds struggled.

Digital asset investment products ended 2025 with total global inflows of $47.2 billion, slightly lower than the record of $48.7 billion in 2024. The year started on a positive note, with $671 million raised last Friday alone.

This pushed total inflows for the week to $582 million, after earlier outflows.

Smaller Altcoins are lagging behind

According to CoinShares’ Digital Asset Fund Flows 2025 Report, Bitcoin struggled in 2025, which resulted in inflows falling 35% to $26.9 billion. Falling prices also drove $105 million into short-bitcoin investment products, although this figure remains a very small segment with $139 million in total assets.

Ethereum led the market, attracting $12.7 billion, up 138% from 2024. XRP and Solana also rose, with inflows of $3.7 billion (up 500%) and $3.6 billion (up 1,000%) respectively. Other altcoins saw weaker demand after falling 30% year-on-year to $318 million.

Sui raised $152 million, Chainlink $22 million and ZCash $17 million, while Litecoin only made $1 million over the year. Overall, investor focus shifted to Ethereum, XRP and Solana, leaving smaller coins largely behind. Multi-asset products, on the other hand, witnessed an outflow of $214 million.

In 2025, the United States remained the largest recipient of digital asset investments, with inflows of $42.5 billion, down 12% from 2024. Germany led the growth, attracting $2.5 billion, compared to outflows of $43 million the year before. Canada also rebounded, seeing inflows of $1.1 billion, following outflows of $603 million in 2024. Switzerland posted a modest gain as it took in $775 million, up 11.5% year-on-year. Next up was Hong Kong with $293 million in investments, followed by the Netherlands with $194 million and France with $128 million. The Cayman Islands and Luxembourg also brought in $42 million and $32 million respectively.

However, Sweden experienced an exodus of $775 million, followed by Brazil with an outflow of $1 million.

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Healthier Bitcoin Installation?

Despite the choppy price action and widespread negative sentiment, says analyst Markus Thielen believes that Bitcoin could enter 2026 in a healthier and more constructive position after a significant market positioning reset. He explained that nearly $30 billion in Bitcoin and Ethereum futures have been pared since last year’s peak in October. This has reduced the speculative surplus and busy transactions.

As investors start the new year with lighter, cleaner portfolios, the market has room to reset and move more organically. Thielen added that this leaner positioning removes the drag caused by excessive leverage, allowing Bitcoin to better reflect demand rather than forced liquidations. As a result, Bitcoin may be free to follow its natural price trajectory, which the analyst believes could be higher.