Key takeaways:
- Bitcoin exchange-traded funds (ETFs) recorded a whopping $978.6 million in investor inflows on January 6.
- Fidelity Wise Origin Bitcoin Fund led the charge, securing $370.2 million.
- US spot Bitcoin ETFs have amassed nearly $1.9 billion in total net inflows by 2025.
Investors poured nearly $1 billion into US spot bitcoin ETFs on January 6 alone. The biggest chunk went to Fidelity’s Wise Origin Bitcoin Fund, which pulled in $370.2 million.
BlackRock’s fund pulled in $209 million, while ARK 21Shares took in $153 million.
Bitcoin ETFs stage comeback
According to data from Farside, Biwise’s BITB ETF and Grayscale’s two spot Bitcoin ETFs โ GBTC and BTC, contributed to the market’s positive momentum, registering inflows of $75.23 million, $73.79 million and $71.19 million, respectively.
Other ETFs showed mixed performance. VanEck’s HODL, Franklin Templeton’s EZBC and Valkyrie’s BRRR attracted modest inflows of $17.33M, $8.88M and $8.38M respectively.
However, three Bitcoin ETFs issued by Invesco, Valkyrie and WisdomTree recorded no inflows on the same day, indicating differences in investor preferences.
The strong rebound in ETF inflows on January 6 almost offset the significant outflows these funds experienced in the second half of December.
From December 19, 2024 to January 2, 2025, Bitcoin ETFs saw a net outflow of approximately $1.9 billion, reflecting weaker demand during that period. Therefore, the rebound on January 6 signals a change in investor sentiment.
Meanwhile, on January 6, the total daily trading volume of Bitcoin ETFs reached $3.96 billion, significantly increasing from the $2.59 billion recorded the previous day.
BlackRock’s iShares Bitcoin ETF leads with $37.4 billion in net inflows, followed by Fidelity’s Wise Origin Bitcoin Fund with $12.4 billion.
Bitcoin ETF rise driven by retail traders as value rises
As Bitcoin becomes more valuable, investors, especially institutions, buy Bitcoin ETFs frantically. This trend drives more money into these ETFs, allowing people to invest in them Bitcoin without directly owning it.
A recent one report from Binance revealed that retail investors have been the main drivers of Bitcoin ETF inflows, representing 80% of demand for Bitcoin ETFs in October 2024.
While private investors dominate, the report shows growing interest from institutional players such as investment advisers and hedge funds. This marks a shift in how more traditional investors view Bitcoin ETFs.
This growing institutional acceptance has led major players in the crypto space to make bold predictions. Bitwise, a leading issuer of crypto ETFs, predicts that Bitcoin will reach $200,000 by the end of 2025, potentially surpassing gold’s $18 trillion market capitalization by 2029.
These projections may prove to be conservative if proposed rule changes become effective. Should the US implement Senator Cynthia Lummi’s proposal To create a Bitcoin reserve, analysts suggest Bitcoin could rise to $500,000 or more by 2026.
