The spot US Bitcoin Exchange-Traded Fund (ETF) experienced a surge in January, reaching a value of $5 billion. However, the price of Bitcoin (BTC) dropped below the coveted $100,000 mark over the weekend. Now, investors are closely monitoring the impact of the increasing inflows into the spot ETFs on Bitcoin’s price.
According to data from SoSoValue, the 12 spot Bitcoin ETFs trading in the US recorded approximately $5.25 billion in inflows in January. This represents a significant increase from the $4.53 billion inflows the funds accumulated in December 2024.
Leading the January gains was BlackRock’s iShares Bitcoin Trust (IBIT), which saw total net monthly inflows of $3.23 billion. As of January 31, the fund’s net assets stood at $59.39 billion, marking a monthly surge of $7.67 billion. Fidelity’s FBTC came in second with monthly inflows of $1.28 billion in January. Its net assets expanded from $18.87 billion at the beginning of the month to $21.76 billion. Ark Invest’s ARKB is the third-largest spot Bitcoin ETF, with net assets amounting to $2.95 billion.
The surge in Bitcoin ETFs in January coincides with President Donald Trump’s return to the White House. Crypto market participants anticipate the establishment of favorable crypto policies under Trump’s new government, especially considering his recent commitment to the industry. In a recent update, we discussed Trump’s appointment of crypto-friendly Mark Uyeda as acting Chair of the Securities and Exchange Commission (SEC), which is seen as a signal of a more relaxed crypto policy during Trump’s second term.
However, Min Jung, a research analyst at Presto Research, commented that the positive sentiment towards crypto that built up from Trump’s reelection is gradually fading. This is largely due to the President’s lack of specific mentions of crypto since his inauguration, as CNF discussed earlier.
In addition, the crypto market experienced over $1 billion in long and short liquidations over the weekend, following Trump’s announcement of upcoming tariffs on imported goods, which triggered a broad sell-off in risk assets.
Regarding projections for BTC and spot Bitcoin ETFs, BTC fell 4.07% in the past 24 hours, trading at $95,753 at the time of writing. However, the daily trading volume increased by 177%, indicating growing interest from investors.
As mentioned in our previous article, Bitwise Chief Investment Officer Matt Hougan believes that Bitcoin’s four-year cycle may have come to an end. He stated that the halving event, which was previously a significant driver of price increases, no longer holds as much influence. Hougan believes that macroeconomic factors and institutional acceptance now have a greater impact. He predicts a strong Bitcoin market in 2025 but advises caution, as 2026 may not follow the same trends.
Similarly, in an Xpost, Hougan wrote that the 12 Bitcoin ETFs could see inflows of over $50 billion this year.
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