The spot US Bitcoin Exchange-Traded Fund (ETF) experienced a surge in January, reaching a value of $5 billion. However, over the weekend, the price of Bitcoin (BTC) dropped below the coveted $100,000 mark. Now, investors are closely monitoring the impact of the inflows into the spot ETFs on Bitcoin’s price.
According to data from SoSoValue, the 12 spot Bitcoin ETFs trading in the US saw inflows of approximately $5.25 billion in January. This represents a significant increase from the $4.53 billion inflows accumulated by the funds in December 2024.
Leading the January gains was BlackRock’s iShares Bitcoin Trust (IBIT), with 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, and its net assets expanded from $18.87 billion 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 favorable crypto policies under Trump’s new government, especially considering his recent commitment to the industry. Previously, we reported on Trump’s appointment of crypto-friendly Mark Uyeda as acting Chair of the Securities and Exchange Commission (SEC), which is expected to lead to a relaxation of the SEC’s crypto policy during Trump’s second term. However, Min Jung, a research analyst at Presto Research, noted that the positive crypto sentiment built from Trump’s reelection is gradually fading, mainly due to the President’s lack of specific mentions of crypto since his inauguration.
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 BTC and spot Bitcoin ETFs, BTC fell by 4.07% in the past 24 hours and was trading at $95,753 at the time of writing. However, the daily trading volume increased by 177%, indicating growing investor interest.
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 the primary driver of price increases, no longer has as much influence. Hougan believes that macroeconomic factors and institutional acceptance now have a greater impact. He forecasted a strong Bitcoin market in 2025 but cautioned that 2026 might not follow the same trends. Similarly, Hougan wrote in an Xpost that the 12 Bitcoin ETFs could see inflows of over $50 billion this year.
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