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Crypto ETFs Close Out 2024 With $443M Surge As Bitwise and Grayscale Eye AI-Focused Tokens

MarketDash Editorial Team
2 hours ago
U.S. cryptocurrency ETFs ended December with a $443 million inflow, reversing weeks of outflows. Meanwhile, Bitwise and Grayscale are racing to bring AI and DeFi tokens to traditional investors with new ETF filings targeting 2026 launches.

The final trading day of 2024 brought some welcome news for crypto ETF enthusiasts: U.S. cryptocurrency exchange-traded funds pulled in $443 million on December 30, suggesting that institutional investors weren't quite ready to write off digital assets after a rough year-end stretch. The inflows came as two major players, Bitwise and Grayscale, filed paperwork signaling their ambitions to expand far beyond Bitcoin (BTC) and Ethereum (ETH) into the worlds of artificial intelligence and decentralized finance.

Bitcoin Bounces Back After Week of Pain

Bitcoin ETFs had been hemorrhaging cash for seven straight days as investors engaged in the annual ritual of tax-loss harvesting and portfolio rebalancing. The products bled roughly $497 million the previous week alone. But December 30 marked a sharp reversal, with Bitcoin ETFs recording $355 million in net inflows, according to data from SoSoValue.

BlackRock's iShares Bitcoin Trust (IBIT) led the charge with $143.8 million in inflows, demonstrating why it's become the heavyweight champion of crypto ETFs. ARK 21Shares' ARKB wasn't far behind with $109.6 million, and Fidelity's FBTC added $78.6 million to the tally.

Bryan Courchesne, CEO of DAIM, characterized the net inflows as a positive rebound from recent de-risking pressures, emphasizing that institutional demand remains resilient despite the year-end volatility.

Ethereum and Altcoins Find Their Footing

Ethereum (ETH) spot ETFs also broke their losing streak, recording their first positive flows in more than a week. The products attracted $67.84 million in net inflows after suffering over $102 million in weekly outflows through late December. It's a modest recovery, but it suggests that investors haven't completely abandoned the second-largest cryptocurrency by market cap.

The real star of the show, though, continues to be XRP (XRP). The XRP ETFs added another $15.55 million, extending their remarkable streak to 29 consecutive trading days without a single day of outflows since launching in November. That's not a typo—29 days in a row of positive or neutral flows. The products have now surpassed $1 billion in cumulative net inflows, a milestone that probably seemed unlikely just a few months ago given XRP's regulatory battles with the SEC.

Solana (SOL) ETFs chipped in $5.21 million, maintaining their position as a consistent draw for growth-oriented institutional investors looking for exposure beyond the two crypto giants.

Bitwise Makes a Big Bet on AI and DeFi

Here's where things get interesting. Beyond the day-to-day inflow numbers, Bitwise filed applications with the SEC for 11 new cryptocurrency ETFs, targeting tokens across the AI and decentralized finance sectors. This isn't just incremental expansion—it's a full-throttle push into the next generation of crypto use cases.

The filings include strategy ETFs tracking Aave (AAVE), Ethena (ENA), Hyperliquid (HYPE), Bittensor (TAO), Tron (TRX), and Uniswap (UNI). Additional proposed funds would cover NEAR (NEAR), Starknet (STRK), Sui (SUI), Canton (CRYPTO: CC), and Zcash (ZEC).

Each fund is structured to invest up to 60% of its assets directly in the underlying token, with the remainder allocated to exchange-traded products or derivatives like futures and swaps. That's a reasonably conservative approach given the volatility of these assets, but it still provides meaningful direct exposure for investors who want to bet on specific crypto sectors.

Bitwise has become something of a pioneer in bringing altcoin ETFs to market. The firm was the first to launch a spot Solana ETF in the U.S. back in October, and followed up with XRP and Dogecoin (DOGE) ETFs in November. Now they're looking to expand the playbook even further.

Grayscale Enters the Bittensor Race

Not to be outdone, Grayscale filed its own registration statement to convert its existing Bittensor Trust into an ETF. If approved, it would mark the first U.S. spot ETF offering direct exposure to Bittensor (TAO), a decentralized machine learning network that's been gaining traction in the AI-crypto crossover space.

The proposed Grayscale Bittensor ETF would trade on NYSE Arca under the ticker symbol GTAO, with Coinbase Custody Trust Company and BitGo Trust Company serving as custodians. The dual-custody setup suggests Grayscale is taking security seriously, which makes sense given Bittensor's relatively niche status compared to established tokens like Bitcoin or Ethereum.

What This All Means for 2025 and Beyond

Matt Hougan, Bitwise's Chief Investment Officer, has made a bold prediction: Bitcoin will defy its historical four-year boom-bust cycle and hit new all-time highs in 2026. His reasoning centers on falling interest rates and accelerating institutional adoption—two factors that could fundamentally change the dynamics of crypto investing.

The wave of ETF filings for AI and DeFi tokens signals that institutional investors are ready to look beyond Bitcoin and Ethereum into higher-growth sectors. This expansion makes sense if you believe that regulatory clarity is improving under the incoming Trump administration, which has signaled a more crypto-friendly stance than its predecessor.

For now, the December 30 inflows suggest that at least some institutional money is willing to jump back into crypto after the year-end selloff. Whether that momentum continues into 2025, or whether we're just seeing a brief technical bounce, remains to be seen. But with major players like Bitwise and Grayscale betting heavily on the next wave of crypto innovation, it's clear that the ETF story is far from over.

Back to Stock Market News

Crypto ETFs Close Out 2024 With $443M Surge As Bitwise and Grayscale Eye AI-Focused Tokens

MarketDash Editorial Team
2 hours ago
U.S. cryptocurrency ETFs ended December with a $443 million inflow, reversing weeks of outflows. Meanwhile, Bitwise and Grayscale are racing to bring AI and DeFi tokens to traditional investors with new ETF filings targeting 2026 launches.

The final trading day of 2024 brought some welcome news for crypto ETF enthusiasts: U.S. cryptocurrency exchange-traded funds pulled in $443 million on December 30, suggesting that institutional investors weren't quite ready to write off digital assets after a rough year-end stretch. The inflows came as two major players, Bitwise and Grayscale, filed paperwork signaling their ambitions to expand far beyond Bitcoin (BTC) and Ethereum (ETH) into the worlds of artificial intelligence and decentralized finance.

Bitcoin Bounces Back After Week of Pain

Bitcoin ETFs had been hemorrhaging cash for seven straight days as investors engaged in the annual ritual of tax-loss harvesting and portfolio rebalancing. The products bled roughly $497 million the previous week alone. But December 30 marked a sharp reversal, with Bitcoin ETFs recording $355 million in net inflows, according to data from SoSoValue.

BlackRock's iShares Bitcoin Trust (IBIT) led the charge with $143.8 million in inflows, demonstrating why it's become the heavyweight champion of crypto ETFs. ARK 21Shares' ARKB wasn't far behind with $109.6 million, and Fidelity's FBTC added $78.6 million to the tally.

Bryan Courchesne, CEO of DAIM, characterized the net inflows as a positive rebound from recent de-risking pressures, emphasizing that institutional demand remains resilient despite the year-end volatility.

Ethereum and Altcoins Find Their Footing

Ethereum (ETH) spot ETFs also broke their losing streak, recording their first positive flows in more than a week. The products attracted $67.84 million in net inflows after suffering over $102 million in weekly outflows through late December. It's a modest recovery, but it suggests that investors haven't completely abandoned the second-largest cryptocurrency by market cap.

The real star of the show, though, continues to be XRP (XRP). The XRP ETFs added another $15.55 million, extending their remarkable streak to 29 consecutive trading days without a single day of outflows since launching in November. That's not a typo—29 days in a row of positive or neutral flows. The products have now surpassed $1 billion in cumulative net inflows, a milestone that probably seemed unlikely just a few months ago given XRP's regulatory battles with the SEC.

Solana (SOL) ETFs chipped in $5.21 million, maintaining their position as a consistent draw for growth-oriented institutional investors looking for exposure beyond the two crypto giants.

Bitwise Makes a Big Bet on AI and DeFi

Here's where things get interesting. Beyond the day-to-day inflow numbers, Bitwise filed applications with the SEC for 11 new cryptocurrency ETFs, targeting tokens across the AI and decentralized finance sectors. This isn't just incremental expansion—it's a full-throttle push into the next generation of crypto use cases.

The filings include strategy ETFs tracking Aave (AAVE), Ethena (ENA), Hyperliquid (HYPE), Bittensor (TAO), Tron (TRX), and Uniswap (UNI). Additional proposed funds would cover NEAR (NEAR), Starknet (STRK), Sui (SUI), Canton (CRYPTO: CC), and Zcash (ZEC).

Each fund is structured to invest up to 60% of its assets directly in the underlying token, with the remainder allocated to exchange-traded products or derivatives like futures and swaps. That's a reasonably conservative approach given the volatility of these assets, but it still provides meaningful direct exposure for investors who want to bet on specific crypto sectors.

Bitwise has become something of a pioneer in bringing altcoin ETFs to market. The firm was the first to launch a spot Solana ETF in the U.S. back in October, and followed up with XRP and Dogecoin (DOGE) ETFs in November. Now they're looking to expand the playbook even further.

Grayscale Enters the Bittensor Race

Not to be outdone, Grayscale filed its own registration statement to convert its existing Bittensor Trust into an ETF. If approved, it would mark the first U.S. spot ETF offering direct exposure to Bittensor (TAO), a decentralized machine learning network that's been gaining traction in the AI-crypto crossover space.

The proposed Grayscale Bittensor ETF would trade on NYSE Arca under the ticker symbol GTAO, with Coinbase Custody Trust Company and BitGo Trust Company serving as custodians. The dual-custody setup suggests Grayscale is taking security seriously, which makes sense given Bittensor's relatively niche status compared to established tokens like Bitcoin or Ethereum.

What This All Means for 2025 and Beyond

Matt Hougan, Bitwise's Chief Investment Officer, has made a bold prediction: Bitcoin will defy its historical four-year boom-bust cycle and hit new all-time highs in 2026. His reasoning centers on falling interest rates and accelerating institutional adoption—two factors that could fundamentally change the dynamics of crypto investing.

The wave of ETF filings for AI and DeFi tokens signals that institutional investors are ready to look beyond Bitcoin and Ethereum into higher-growth sectors. This expansion makes sense if you believe that regulatory clarity is improving under the incoming Trump administration, which has signaled a more crypto-friendly stance than its predecessor.

For now, the December 30 inflows suggest that at least some institutional money is willing to jump back into crypto after the year-end selloff. Whether that momentum continues into 2025, or whether we're just seeing a brief technical bounce, remains to be seen. But with major players like Bitwise and Grayscale betting heavily on the next wave of crypto innovation, it's clear that the ETF story is far from over.