The rising ETF inflows have been largely linked to the positive sentiment surrounding President Donald Trump’s return to office.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
3 mins read
Latest data reports from SoSoValue have revealed that the US spot Bitcoin exchange-traded funds (ETFs) raked in an impressive $5.25 billion in net inflows last month. Percentage-wise, this represented a 15.89% increase from the $4.53 billion recorded in December 2024.
For what it might be worth, however, January’s surge in inflows has not come shockingly. That is considering that the period collided with Donald Trump‘s return as the president of the United States, a move that has been quite beneficial to the entire crypto space, to say the least.
SoSoValue detailed BlackRock’s iShares Bitcoin Trust (IBIT) as leading the inflows in January. The fund attracted $3.23 billion in inflows through the month. This meant that, by January 31, its total net assets had increased by $7.67 billion to stand at $59.39 billion.
There is a reason why Fidelity’s Wise Origin Bitcoin Fund (FBTC) is the second-largest spot Bitcoin ETF in terms of net assets, and it didn’t disappoint. FBTC followed in the tracks of IBIT, bringing in $1.28 billion worth of capital inflows in January. Its net assets also climbed from $18.87 billion at the start of the month to $21.76 billion.
Following these updates, industry experts have shared that it is very likely that the Bitcoin ETFs will keep up this momentum well into 2025. So high is this optimism, that Matt Hougan, chief investment officer at Bitwise, has even projected capital flows of approximately $50 billion into the ETFs by year-end.
Though the expectations remain on the high side, Matt has not hesitated to point out the possibility that market conditions, at some point, could lead to fluctuations in investment activity.
Having established that there is rising interest in Bitcoin BTC $84 030 24h volatility: 4.2% Market cap: $1.66 T Vol. 24h: $31.10 B , especially from institutions, Bitcoin (BTC) price recently fell. Over the past 24 hours, it has lost 3.76% of its value and was seen trading at around $95,122 as of press time. Ether ETH $1 921 24h volatility: 3.4% Market cap: $231.04 B Vol. 24h: $13.80 B , even saw a bigger loss, shedding 15.4% to settle at $2,590.
As earlier stated, the rising ETF inflows have been largely linked to the positive sentiment surrounding President Donald Trump’s return to office. However, it appears that the buzz may gradually be settling down now. This is especially true since there haven’t been any policy discussions that are directly targeted at crypto from the new administration so far.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
