- American Bitcoin ETF products raked in more than $5 billion in January.
- Market leaders forecast a strong showoff for the funds, with $50 billion inflow projected by Bitwise CIO Matt Hougan.
The spot US Bitcoin Exchange-Traded Fund saw an upsurge in January, with value reaching $5 billion. Unfortunately, the price of Bitcoin (BTC) dropped below the coveted $100,000 mark during the weekend. Now, investors are watching how the surging inflows into the spot ETFs will impact Bitcoin’s price.
BlackRock’s IBIT Leads $5B January Inflows
According to data from SoSoValue, the 12 spot Bitcoin ETFs trading in the US recorded about $5.25 billion inflows in January. This figure represents an outstanding increase from the $4.53 billion inflows the funds accumulated in December 2024.
BlackRock’s iShares Bitcoin Trust (IBIT) led the January gains with total net monthly inflows of $3.23 billion. As of January 31, the fund’s net asset stood at $59.39 billion, marking a $7.67 billion monthly surge.
Fidelity’s FBTC came second with monthly inflows of $1.28 billion in January. Its net assets expanded from the $18.87 billion recorded at the beginning of the month to $21.76 billion. Ark Invest’s ARKB is the third-largest spot Bitcoin ETF with net assets, which amounted to $2.95 billion.
The January surge in Bitcoin ETFs comes amid President Donald Trump’s return to the White House. Crypto market players anticipate establishing favorable crypto policies under Trump’s new government, especially considering his recent commitment to the industry.
In a recent update, we covered Trump’s designation of crypto-friendly Mark Uyeda as acting Chair of the Securities and Exchange Commission (SEC). Uyeda’s appointment presumably signifies a relaxation of the SEC’s crypto policy during Trump’s second term.
However, Min Jung, a research analyst at Presto Research, commented that the positive crypto sentiment built up from Trump’s reelection is gradually fading. This is largely attributed to the President’s lack of crypto-specific mentions since his inauguration, as CNF discussed earlier.
Concurrently, the crypto market experienced over $1 billion in long and short liquidations over the weekend. This follows Trump’s announcement of upcoming tariffs on imported goods, which appeared to cause a broad sell-off in risk assets.
Projections for BTC and Spot Bitcoin ETFs
Amid the broader crypto sell-off, BTC fell 4.07% in the past 24 hours to trade at $95,753 at the time of writing. However, the daily trading volume increased by 177%, suggesting investors’ increasing interest.
As highlighted in our previous article, Bitwise Chief Investment Officer Matt Hougan thinks Bitcoin’s four-year cycle may have ended. He said the halving event, formerly the primary driver of price increases, is no longer as influential.
Hougan opined that macroeconomic factors and institutional acceptance now have a greater impact. Accordingly, he forecasted a strong Bitcoin market in 2025 but cautioned that 2026 might not follow previous trends.
Likewise, Hougan wrote in an X post that the 12 Bitcoin ETFs could see over $50 billion in inflows this year.
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