European ETFs Break Records with $93 Billion Inflows

European exchange-traded funds (ETFs) saw a remarkable surge of $93 billion in net assets during the first quarter of 2025, setting a new record and surpassing the previous high of $91 billion set in the final quarter of 2024, according to Invesco’s latest European ETF Snapshot.

ETFs in Europe experienced strong growth, reaching $2.38 trillion in assets under management due to the investment of $93 billion combined with market performance results during March 2025. The 80% increase in total money came from equity-focused ETFs, resembling the normal 2024 pattern.

European Equity ETFs Outpace US Investments

European-focused stock investments received more money than those in US companies. During Q1, European ETFs experienced their highest-ever inflow: a total of $19.4 billion, making up 19% of all industry new capital added.

European equity ETFs registered $11.4 billion of investment whereas German equity ETFs welcomed $5 billion. Markets become more volatile worldwide so investors put their money into different parts of Europe to protect their portfolios.

European crypto exchange-traded products (ETPs) received investor capital increases as CoinShares announced on April 18. Switzerland received $43.7 million investment, while Germany received $22.3 million in investment funds.

The US crypto industry experienced heavy departures resulting in $71 million in withdrawals from ETPs trading on US exchanges. Investors now clearly prefer European markets over US markets.

Investor interest toward US stocks declined during Q1, even though assets focused on Europe performed well. US equity ETFs experienced $2.2 billion in money leaving their funds during March alone, which made up $4.5 billion outflow in total for Q1 2025 compared to the $17.7 billion of inflows in US focused ETFs during Q4 2024.

Investors withdraw capital from US equity funds because they worry about risks related to market indices both inside and outside the United States.

Gold ETFs Drive Positive Asset Growth in Q1

Gold commodities helped overall asset growth turn positive during Q1. During the three-month period, gold ETFs experienced continuous money inflows because the gold market grew by 19%, beating other primary asset types.

Market participants buy gold as a protected investment since economic concerns and equity market volatility drive them toward this dependable asset.

Gary Buxton, as Head of EMEA ETFs for Invesco, explains that European stock market valuation benefits drive investor support. He suggests that investors will keep shifting money out of U.S. stocks and reduce portfolio risks through European market investment in upcoming months.

Buxton explained why gold stays popular as a diversifier because its relationships with equities have remained weak throughout market uncertainty. Bitcoin continues to develop into a risk-off technical investment that jointly drives the emerging market diversity strategy worldwide including its traditional financial sectors.

Investors will continue to use regional and asset diversification techniques more often because economic uncertainty refuses to disappear. Investors are showing more interest in European markets and gold because of their stable returns compared to the increasing worldwide risks.