The United States-based spot Bitcoin exchange-traded funds (ETFs) have recorded a significant surge in net inflows, reversing the trend of low demand seen in the latter half of December. The data from Farside Investors reveals that the spot Bitcoin ETFs attracted nearly $1.9 billion in investor money on January 3 and 6.
Record-Breaking Net Inflows
The two strong days on January 3 and 6 almost offset the $1.9 billion in net outflows seen between December 19 and January 2. This massive influx of funds has brought the total net inflows for the spot Bitcoin ETFs to a staggering $36.9 billion since their launch nearly 12 months ago.
Top Performing Spot Bitcoin ETFs
The data highlights that BlackRock’s iShares Bitcoin ETF leads all others with $37.4 billion in net inflows, followed closely by the Fidelity Wise Origin Bitcoin Fund at $12.4 billion. In contrast, Grayscale’s converted GBTC has witnessed significant outflows of $21.4 billion.
Retail vs Institutional Investors
An October 25 report from cryptocurrency exchange Binance found that nearly 80% of demand for the spot Bitcoin ETFs came from retail investors, rather than institutions. However, industry analysts expect more institutional involvement in 2025 when clearinghouses for spot Bitcoin ETF trading come online. This increased participation is expected to boost prices and drive growth.
Analysts’ Predictions
Bitwise’s chief investment officer Matt Hougan expects a significant increase in institutional involvement in 2025, which could lead to higher prices. In fact, Bitwise has a bullish $200,000 Bitcoin price estimate for 2025. VanEck also predicts that Bitcoin will top $180,000 in the same year.
Daily Flows into US Spot Bitcoin ETFs
| Date | Net Inflows (USD) |
|————|——————–|
| Dec 19 | -$1.4B |
| Dec 20 | -$434M |
| Dec 21 | -$242M |
| Dec 22 | -$235M |
| Dec 23 | -$193M |
| Dec 26 | -$166M |
| Dec 27 | -$143M |
| Dec 28 | -$124M |
| Jan 2 | $-109M |
| Jan 3 | $978.6M |
| Jan 6 | $978.6M |
Source: Farside Investors
Table Notes:
- The table represents the net inflows (in USD) into the US spot Bitcoin ETFs between December 19 and January 6.
- The dates in bold indicate the two strong days that saw significant net inflows.
The latest influx of funds has brought the total net inflows for the spot Bitcoin ETFs to a staggering $36.9 billion since their launch nearly 12 months ago. This surge in demand is expected to continue, driven by increased institutional involvement and growing confidence in the cryptocurrency market.
Why 2025 Could Be a Game-Changer
The launch of clearinghouses for spot Bitcoin ETF trading is expected to drive growth and boost prices. Industry analysts predict that more institutions will participate in the market, leading to higher demand and potentially higher prices.
Will Spot Bitcoin ETFs Continue to Attract Investors?
The latest data suggests that investors are becoming increasingly confident in the cryptocurrency market. With more institutional involvement expected in 2025, it is likely that spot Bitcoin ETFs will continue to attract investors, driving growth and boosting prices.
Conclusion
The surge in net inflows into spot Bitcoin ETFs is a clear indication of growing investor confidence in the cryptocurrency market. With more institutions expected to participate in 2025, it is likely that prices will rise, and demand for these products will continue to grow. As the industry continues to evolve, it will be interesting to see how spot Bitcoin ETFs adapt and respond to changing market conditions.
References:
- Farside Investors (n.d.). Daily Flows into US Spot Bitcoin ETFs.
- Binance (2023). Report on Spot Bitcoin ETF Demand.
Related Articles:
