Cryptocurrency funds, mostly led by Bitcoin and Ethereum ETFs added $585 million in assets in the first three days of 2025 after ending the year with a major round of profit-taking and outflows.

The strong start comes on the heels of a record year for cryptocurrency-based exchange-traded products, according to a new report from digital asset manager CoinShares. All told, $44 billion in assets flowed into these funds — more than four times the previous record of 2021, wrote James Butterville, head of CoinShares research.

Bitcoin funds now represent 29% of assets under management tracked by the European company.

On Friday alone, Bitcoin ETF issuers saw $908 million worth of shares sold, according to data from Persian investors.

“Bitcoin’s performance at the end of January will be a crucial indicator,” Markus Thielsen, CEO of 10x Research, wrote in a note to investors. “Following the hawkish FOMC meeting in December, Bitcoin ETF flows have slowed significantly, exacerbated by less favorable global liquidity conditions.”

With 23 days left, CME Group's FedWatch tool It shows that traders overwhelmingly expect the Fed to keep interest rates where they are. The CME tool uses derivatives trading data to estimate the outcomes investors can expect from upcoming Federal Open Markets Committee meetings.

Even if that happens, it may not be a huge macroeconomic indicator for Bitcoin. For a while, every Federal Open Market Committee (FOMC) meeting that ended without adjusting the Fed's key interest rate was disastrous for the price of Bitcoin. But since the Fed finally cut interest rates in September -For the first time in four yearsThe impact on price was less clear.

However, BRN analyst Valentin Fournier believes that any bullish price movement coinciding with the inauguration of President-elect Donald Trump later this month could be followed by consolidation.

"Since Christmas, Bitcoin has been on a strong upward trajectory. With no negative news on the horizon, this trend will likely continue until Trump's inauguration on January 20," he wrote. “At that point, a pullback may occur unless market expectations are met. We recommend maintaining significant exposure to digital assets, with a balanced allocation between Bitcoin and Ethereum based on their respective market caps.”

Modified by Andrew Hayward