By Vishakha Thakur
Well, as we can see, President Donald Trump’s comeback into the White House as the 47th President of the United States, has strengthened the bullish sentiment in the crypto market. Institutional interest in Bitcoin and Ethereum ETFs has surged to record highs, with the week from January 20 to 26, registering staggering inflows of $3.12 bn into Bitcoin and Ethereum ETFs.
No doubt, Bitcoin ETFs have dominated with $2.76 bn in inflows. BlackRock’s IBIT led the pack, attracting $1.933 bn over the week and cementing its position as the market leader with total holdings of $60.41 bn. Fidelity’s FBTC followed with $338.68 mn, while ARK’s ARKB drew $255.75 mn. However, not all Bitcoin funds shared in the gains as Bitwise’s BITB, Grayscale’s BTC, and Vaneck’s HODL recorded outflows of $159.10 mn, $171.97 mn, and $35.76 mn, respectively.
Interestingly, as U.S Spot BTC ETFs bought 16,500 Bitcoins this week, only 3,150 were mined on average.
In fact, On Dec. 16, US spot and derivative Bitcoin ETFs collectively broke $129 bn in net assets, surpassing gold ETFs for the first time as per K33 Research. And on January 24, the total spot ETF trading surpassed $10.11 bn, $7.03 bn of which was accounted for by BlackRock’s IBIT.
Well, many analysts foresee significant upside potential for Bitcoin by the end of 2025.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, the spot Bitcoin ETF has had a strong start this year with inflows reaching $4.2 bn, accounting for 6% of all ETF inflows. Since its launch, net inflows have exceeded $40 bn, with assets under management reaching $121 bn and a return rate of 127%.
Also, Bernstein analysts predict Bitcoin could reach $200,000, citing strong inflows into spot ETFs and institutional adoption as key drivers.
Talking of Ethereum ETFs…. Ethereum ETFs also saw impressive performance, bringing in $356.77 mn during the same period. BlackRock’s ETHA accounted for $251.39 mn of those inflows, with Fidelity’s Ether ETF contributing $94.31 mn. These numbers highlight Ethereum’s continued appeal among both institutional and retail investors as well.
Meanwhile, the ETF market continues to see upward movement. Bitwise has filed for a Dogecoin ETF, banking on the memecoin’s $52 bn market cap. Rex Shares and Osprey Funds have also submitted filings for ETFs tied to Dogecoin, Bonk, and the newly launched TRUMP memecoin, which has already seen a whirlwind of activity and volatility. Additionally, Asset managers Grayscale and Coinshares have both filed with the SEC to offer a Litecoin ETF.
Well, Trump’s administration has long been associated with pro-market policies, and his return to the White House appears to have bolstered the sentiment in the cryptocurrency space. From record inflows to groundbreaking new filings, the ETF market is definitely buzzing with activity.
Stay tuned as we track the crypto ETFs.
Well, that’s all in the ETF watch, crypto edition. Keep watching…
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