Exchange-traded funds (ETFs) in Europe are booming. The market established a new highwater mark in 2024, with investment inflows in the region reaching US$270 billion — nearly 40 percent higher than the previous record, according to State Street’s recent report, 2025 Global ETF Outlook: The Expansion Accelerates.

Importantly, ETFs attracted inflows across all asset classes (equity, fixed income, cryptocurrency) and strategies (active, ESG, leveraged/inverse, passive, smart beta).

Ireland has established a prominent position in Europe’s ETF market, with more than 70 percent of European ETFs domiciled here.¹ The country’s well-established regulatory framework, strong industry expertise and deep understanding of the European market have all played a crucial role in making Ireland a leading market for ETF issuers.

The Central Bank of Ireland continues to adopt a pragmatic stance on product innovation. It has either amended or introduced new rules to remove barriers to entry for new issuers and investors alike in areas such as portfolio transparency, fund-naming conventions and new ETF offerings. Its partnership with the fund management industry has been instrumental in driving positive change in the ETF market and helping to create a robust ecosystem.

Looking more broadly across Europe, State Street’s ETF Outlook also explores the growth of active ETFs as one of the emerging trends shaping the European market. Inflows into active ETFs rose from US$7 billion to US$20 billion in 2024. At the same time, the number of active ETF products increased significantly, from 103 to 178. It is striking that inflows into active ETFs were equal to 74 percent of the previous year’s total assets under management in Europe.²

The report predicts that this trend will persist, with more issuers and products entering the market, including standalone strategies and the expansion of unlisted funds launching a listed share class.