The U.S.-based spot Bitcoin exchange-traded funds (ETFs) have experienced a significant turnaround, recording nearly $1.9 billion in net inflows on January 3 and January 6, 2025. This marked a dramatic shift after a period of low demand during the latter half of December. These strong inflows are a positive indicator for the Bitcoin market, especially as the 2025 outlook becomes increasingly bullish.
On January 6 alone, Bitcoin ETFs attracted $978.6 million, with the Fidelity Wise Origin Bitcoin Fund leading the pack, receiving $370.2 million. BlackRock’s iShares Bitcoin ETF and the ARK 21Shares Bitcoin ETF followed, bringing in $209 million and $153 million, respectively, according to data from Farside Investors. Grayscale’s two spot Bitcoin ETFs (GBTC and BTC) also saw over $70 million in inflows on January 6.
Despite these gains, several other ETFs, such as those issued by Invesco, Valkyrie, and WisdomTree, recorded no inflows on the same day, reflecting a more selective investor approach.
The strong inflow days nearly offset the $1.9 billion in net outflows recorded between December 19 and January 2. Since the launch of these Bitcoin ETFs nearly 12 months ago, total net inflows have reached $36.9 billion. BlackRock’s iShares Bitcoin ETF has led the charge, accumulating $37.4 billion in net inflows, while Grayscale’s converted GBTC has seen a notable $21.4 billion in outflows.
Notably, demand for Bitcoin ETFs has primarily come from retail investors, with Binance’s October 2024 report highlighting that nearly 80% of demand has been retail-driven, rather than institutional. However, industry analysts, including Bitwise’s CIO Matt Hougan, expect institutional involvement to increase in 2025 as more clearinghouses for spot Bitcoin ETF trading come online. This shift is fueling bullish predictions for Bitcoin, with Bitwise forecasting a price of $200,000 by 2025, while VanEck expects Bitcoin to surpass $180,000.
Also Read: Bitcoin Reclaims $100K: U.S. Investors and Spot ETFs Fuel Historic Bull Run
With strong inflows and a promising future outlook, spot Bitcoin ETFs are poised to play a key role in the ongoing maturation of the cryptocurrency market.
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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