A report from CoinShares highlighted a booming year for the crypto market in 2024, with net inflows reaching $44.2 billion, four times higher than the previous record in 2021. This confirms the growing role of institutional investors in driving the market. However, the final weeks of the year showed signs of slowing capital flows, with the final week (December 30, 2024 - January 5, 2025) recording a net withdrawal of $75 million, ending an 11-week streak of consecutive growth.
Analyzing the causes
James Butterfill from CoinShares explained that the negative capital flows could be due to institutions rebalancing their portfolios and finalizing their year-end financial figures. This is a common activity to ensure financial efficiency and is consistent with long-term investment strategies.
Capital flows by country
Based on data from Bloomberg and CoinShares:
• The US continues to lead, with inflows reaching $196 million last week and nearly $44.5 billion for the year.
• Switzerland and Australia also recorded positive capital flows, with $8.4 million and $1.1 million, respectively, in the final week of the year.
Meanwhile, many countries recorded strong capital outflows:
• Canada: -$212.9 million
• Germany: -$40.6 million
• Switzerland: -$16.2 million
• Hong Kong: -$10.2 million
2024 Summary
• The US asserted its leadership with outstanding positive capital flows.
• Canada and Sweden recorded the strongest capital outflows, with a total net outflow of about $700 million each
