ETF Market Hits Record High in 2025 as Crypto Funds Lead the Surge

• ETF launches surpass 900 in 2025, setting a new annual record amid rising investor demand.
• Net ETF growth outpaces closures, driven by thematic trends like AI and blockchain.
• Crypto ETFs surge as ether and bitcoin funds attract over $400 million in new inflows.

The U.S. exchange-traded fund (ETF) sector is on track to break records in 2025, with over 900 new ETF launches already confirmed by mid-year. This marks the strongest annual expansion in the industry’s history, surpassing the previous highs of 2023 and 2024. Despite a parallel increase in fund closures, the net total of new ETFs has reached an all-time high, reflecting sustained institutional demand and investor interest in targeted, low-cost financial products.

ETFs are on pace to see record launches this year (and net new launches), easily beating record set last year which shattered the prior record. And this is WITHOUT factoring in potential ETF share class filings which could raise number more. Tsunami in effect.. pic.twitter.com/5CaP90Bh2U

— Eric Balchunas (@EricBalchunas) June 13, 2025

The data also shows that the current pace of growth does not include potential ETF share class conversions, which could further push the number of net launches higher before the year ends. Historical data indicates that ETF closures have trended higher since 2020, with a notable spike during the pandemic.

However, while closures remain higher, they have not overtaken the volume of new product introductions. The orange bars representing closures remain clearly lower than the number of new launches each year, signalling continued resilience in the ETF market.

The most striking trend is the sharp rise in net ETF launches starting in 2021. A strong positive trend in the blue line, which represents net launches, becomes even clearer in 2025. This movement reflects structural shifts in investment behaviour, with asset managers increasingly offering specialized and thematic ETFs. The growing interest in areas such as artificial intelligence, inflation protection, and blockchain technology is likely contributing to this expansion.

Crypto ETFs Attract Heavy Inflows

One of the major factors of ETF growth in 2025 has been the rise in crypto-related fund inflows. Ether ETFs reached a historic milestone on June 11, logging their 18th consecutive day of net gains and drawing a total of $240.29 million.

BlackRock’s ETHA led the category with $163.64 million in inflows, followed by Fidelity’s FETH with $37.28 million. Grayscale’s Ether Mini Trust and its larger ETHE fund recorded $19.61 million and $13.30 million, respectively. Bitwise’s ETHW added $6.46 million to the total. Combined, ether ETFs recorded $830.98 million in trading volume and saw their total net assets rise to $11.05 billion.

Bitcoin ETFs also posted their third straight day of inflows, collecting $164.57 million. Among these, BlackRock’s IBIT took in $131.01 million, with Vaneck’s HODL adding $15.39 million. Fidelity’s FBTC and Franklin’s EZBC brought in $11.87 million and $6.30 million, respectively. No outflows were reported from any of the tracked funds. Overall, crypto ETF assets now stand at $131.85 billion, with a total daily trading volume of $2.41 billion.