The growing institutional interest in Bitcoin has reached a new milestone, as US spot Bitcoin exchange-traded funds (ETFs) surpassed $125 billion in holdings on January 30, 2025. This milestone comes just over a year after these ETFs first debuted on January 11, 2024. According to Dune Analytics, these ETFs now account for over 6.05% of the total Bitcoin (BTC) supply, marking a significant development in the cryptocurrency’s mainstream adoption.
The rise of Bitcoin ETFs has also had a direct impact on the cryptocurrency’s price movements. From January 1 to 24, 2025, Bitcoin ETFs saw $4.2 billion in inflows, making up more than 6% of all ETF inflows during that period, as reported by Bloomberg’s senior ETF analyst, Eric Balchunas. The growing demand for Bitcoin ETFs has been a driving force behind the asset’s recent rally. In fact, ETF investments contributed to about 75% of Bitcoin’s new investments when the cryptocurrency broke the $50,000 mark on February 15, 2025, just a month after the ETFs launched.
The spot bitcoin ETFs quietly on fire to start year, with $4.2b in flows which is 6% of all ETF flows. Now at +$40b net since launch with aum at $121b and return of 127%. For context they just passed ESG ETFs in assets ($117b) and have about same as gold spot. pic.twitter.com/GADOomLXD4
— Eric Balchunas (@EricBalchunas) January 24, 2025
Among the top players in this space, BlackRock’s Bitcoin ETF stands out. The world’s largest asset manager controls the largest Bitcoin ETF, which now boasts over $58 billion in assets. This makes BlackRock’s IBIT ETF the 31st-largest ETF globally, surpassing both crypto and traditional finance products, according to VettaFi data. On January 30, BlackRock’s fund alone accounted for over 54% of the day’s net inflows, totaling $588 million in Bitcoin purchases, according to Farside Investors.
Analysts, including Ryan Lee, chief analyst at Bitget Research, remain optimistic about Bitcoin’s future, predicting the cryptocurrency could reach $200,000 by 2025. While Bitcoin’s price is sensitive to economic factors like potential interest rate cuts by the US Federal Reserve, the continued success of Bitcoin ETFs and increasing institutional adoption may keep the cryptocurrency on an upward trajectory throughout the year.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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