CDS Crypto News Bitcoin ETF Inflows Hit New Highs: January Sees Nearly $5 Billion, Growth Expected to Continue
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Bitcoin ETF Inflows Hit New Highs: January Sees Nearly $5 Billion, Growth Expected to Continue

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Bitcoin Etf Inflows Hit New Highs: January Sees Nearly $5 Billion, Growth Expected To Continue

Bitcoin ETFs Gaining Momentum: January’s $5 Billion Inflows Pave the Way for $50 Billion by 2025

Bitcoin ETF– Bitcoin spot exchange-traded funds (ETFs) in the U.S. have been experiencing massive growth, with nearly $5 billion in inflows during January alone. According to Matt Hougan, Chief Investment Officer at Bitwise, this surge in investment could place Bitcoin ETFs on track to surpass $50 billion in total inflows by the end of 2025.

January’s Strong Start for Bitcoin ETFs

“Spot Bitcoin ETFs pulled in $4.94 billion in January, which annualizes to roughly $59 billion,” Hougan noted in a February 1st post on X. He further clarified that 2024 ended with $35.2 billion in inflows, but the momentum at the start of 2025 suggests a far more substantial total for the year. Hougan explained that while “there is significant month-to-month volatility in flows,” the upward trajectory indicates that Bitcoin ETFs could end the year well above $50 billion in total inflows.

BlackRock and Fidelity Lead the Charge

Leading the inflows in January were BlackRock’s iShares Bitcoin Trust ETF (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). IBIT saw a remarkable $3.2 billion in net inflows, while FBTC followed closely with nearly $1.3 billion. These large institutional players have been a key part of Bitcoin explosive growth.

Bitwise’s own Bitcoin (BITB) recorded over $125 million in inflows, ranking fifth among the 11 Bitcoin ETFs in January. The Grayscale Bitcoin Mini Trust ETF (BTC) outperformed BITB with about $398.5 million in net inflows.

Bitcoin Etf Inflows Hit New Highs: January Sees Nearly $5 Billion, Growth Expected To Continue

Bitcoin Gaining Momentum for 2025

Hougan and Bitwise’s Head of Research, Ryan Rasmussen, had predicted in December that Bitcoin ETFs would see even larger inflows in 2025, surpassing those of 2024. They emphasized that institutional investors are likely to “double down” on Bitcoin, increasing their allocations to these funds. Additionally, they pointed out that the first year of an ETF is typically slower. For context, gold ETFs saw just $2.6 billion in inflows in their first year, more than doubling to $5.5 billion in their second year.

Unleashing the Full Potential of Bitcoin

Hougan and Rasmussen also forecasted that 2025 will see an increasing number of wealth managers gaining access to Bitcoin. The duo noted that some of the world’s largest wealth management firms have yet to fully tap into the Bitcoin ETF market, which could expose these funds to trillions of dollars in investment.

In conclusion, Bitcoin ETFs are off to a promising start in 2025, with a record-breaking January and projections for even larger growth in the coming years. As more institutional investors begin to engage with Bitcoin ETFs, their influence on the market is expected to grow, possibly reshaping the digital asset landscape.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.

Bitcoin Etf Inflows Hit New Highs: January Sees Nearly $5 Billion, Growth Expected To Continue
Written by
Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.

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