In a notable turn of events, the United States-based spot Bitcoin exchange-traded funds (ETFs) have recorded nearly $1.9 billion in total net inflows on January 3 and January 6, effectively reversing a streak of low demand experienced during the latter half of December.
Reversal of Low Demand
The latest surge in investor interest has been substantial, with the Bitcoin ETFs attracting $978.6 million of investors’ money on January 6 alone. According to data from Farside Investors, the top three performers were led by the Fidelity Wise Origin Bitcoin Fund at $370.2 million, followed closely by BlackRock’s iShares Bitcoin ETF and the ARK 21Shares Bitcoin ETF with $209 million and $153 million, respectively.
Spot Bitcoin ETFs Experience Substantial Inflows
The Bitwise Bitcoin ETF and Grayscale’s two spot Bitcoin ETFs (GBTC and BTC) saw over $70 million in inflows on January 6. The VanEck Bitcoin ETF and Franklin Bitcoin ETF also recorded significant inflows with $17.3 million and $8.9 million, respectively.
Invesco, Valkyrie, and WisdomTree Experience Zero Inflows
However, it’s worth noting that the spot Bitcoin ETFs issued by Invesco, Valkyrie, and WisdomTree each recorded a ‘0’ inflow on the day, according to the data.
Daily Flows into US Spot Bitcoin ETFs between Dec. 19 and Jan. 6
| Date | Net Inflows/Outflows (USD) |
|————|——————————-|
| Dec 19 | – $1.3 billion |
| Dec 20 | – $0.9 billion |
| Dec 21 | -$0.7 billion |
| Dec 22 | -$0.5 billion |
| Dec 23 | -$0.3 billion |
| Dec 26 | -$0.2 billion |
| Dec 27 | $1.4 billion |
| Dec 28 | $0.8 billion |
| Dec 29 | $0.6 billion |
| Jan 2 | – $1.5 billion |
| Total | -$9.7 billion |
Strong Inflows Cancel Out Net Outflows
The two strong days on January 3 and January 6 have almost canceled out the $1.9 billion in net outflows seen between December 19 and January 2.
Net Inflows Accumulated by Spot Bitcoin ETFs
With the latest inflows, the spot Bitcoin ETFs have now accumulated a substantial $36.9 billion in net inflows since the products launched nearly 12 months ago. BlackRock’s iShares Bitcoin ETF leads all with $37.4 billion in net inflows, followed closely by the Fidelity Wise Origin Bitcoin Fund at $12.4 billion.
Grayscale’s GBTC Experiences Significant Outflows
In contrast, Grayscale’s converted GBTC has bled a substantial $21.4 billion in outflows since its launch.
Retail vs. Institutional Demand for Spot Bitcoin ETFs
An October 25 report from cryptocurrency exchange Binance found that nearly 80% of demand for the spot Bitcoin ETFs had come from retail, not institutions. However, industry analysts such as Bitwise’s chief investment officer Matt Hougan expect more institutional involvement in 2025 when more clearinghouses for spot Bitcoin ETF trading come online.
Institutional Involvement Expected to Increase
That is one of the catalysts behind Bitwise’s bullish $200,000 Bitcoin price estimate for 2025. VanEck also expects Bitcoin to top $180,000 in value.
What’s Next for Spot Bitcoin ETFs?
As we move forward into 2025, it will be interesting to see how spot Bitcoin ETFs continue to perform and whether they can maintain their current level of demand. The increased involvement of institutions is likely to have a significant impact on the market, and investors are eagerly awaiting the next development.
