In January, US spot Bitcoin exchange-traded funds (ETFs) experienced nearly $5 billion in inflows, suggesting they could attract over $50 billion this year, according to Matt Hougan of Bitwise. He noted that January’s inflow of $4.94 billion indicates a potential annual total of around $59 billion. BlackRock’s iShares Bitcoin Trust ETF led the pack with $3.2 billion in inflows, followed by Fidelity’s Bitcoin Fund at $1.3 billion. Hougan and research head Ryan Rasmussen expect that Bitcoin ETF inflows could grow even larger in 2025 as institutional investors seek to increase their allocations, potentially unlocking significant funds. They emphasized that the first year for ETFs is typically slower, with gains expected in subsequent years.
US spot Bitcoin exchange-traded funds (ETFs) have experienced a strong start to the year, with nearly $5 billion in inflows during January alone. According to Matt Hougan, Chief Investment Officer at Bitwise, this trend could lead to total inflows exceeding $50 billion by the end of 2024.
In his February 1 post on X, Hougan noted that the $4.94 billion inflow for January sets an impressive pace, projecting an annualized rate of around $59 billion. This is a significant increase compared to the $35.2 billion the ETFs garnered last year.
Despite some fluctuations from month to month, Hougan remains optimistic that Bitcoin ETFs will continue to attract capital throughout the year. In our previous report, he and Ryan Rasmussen of Bitwise anticipated that inflows in 2025 would surpass those of 2024, driven by increased interest from institutional investors.
BlackRock and Fidelity stand out as leaders in January, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) taking in $3.2 billion. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed, with nearly $1.3 billion in inflows. Bitwise’s own ETF, the Bitwise Bitcoin ETF (BITB), also saw considerable interest, netting over $125 million.
Hougan and Rasmussen pointed out that the initial year for an ETF is often the slowest. For instance, gold ETFs only managed $2.6 billion in their first year in 2004, but this figure jumped to over $5.5 billion in the following year. They also mentioned that many wealth managers have not had direct access to Bitcoin ETFs yet, but expect this to change soon, potentially opening the floodgates for even greater investment.
As the year progresses, it will be interesting to see how these trends evolve in the Bitcoin ETF Market.
Tags: Bitcoin ETF, cryptocurrency investments, Bitcoin inflows, BlackRock, Fidelity, investment trends
What is a Bitcoin ETF?
A Bitcoin ETF, or exchange-traded fund, is an investment fund that tracks the price of Bitcoin. It allows people to invest in Bitcoin without actually owning it directly.
Why might Bitcoin ETFs attract over $50 billion in 2025?
According to Bitwise, Bitcoin ETFs could attract this amount in 2025 due to growing interest from investors and more institutional adoption of Bitcoin.
How do Bitcoin ETFs benefit regular investors?
Bitcoin ETFs offer an easy way for everyday investors to get exposure to Bitcoin without the complexities of buying and storing the cryptocurrency.
Are there any risks involved with Bitcoin ETFs?
Yes, like all investments, Bitcoin ETFs come with risks. The price of Bitcoin can be very volatile, which means the value of the ETFs can change quickly.
What should I know before investing in a Bitcoin ETF?
Before investing, you should understand Bitcoin and how ETFs work. It’s also important to consider your financial goals and speak with a financial advisor if you’re unsure.
