U.S. Spot Bitcoin ETFs See $697M Inflows as BlackRock Leads

U.S. spot Bitcoin ETFs kicked off 2026 with $458.77 million in net inflows from late December to January 2. This marked an end to a seven-day outflow streak and indicated renewed institutional interest. BlackRock’s iShares Bitcoin Trust (IBIT) led the inflow, bringing in $324.15 million for the week. This was the largest contribution among all major Bitcoin ETFs during that period. Ether ETFs also posted $161 million in net inflows, showing signs of stabilization after a volatile end to 2025.

Bitcoin ETFs ended a seven-day streak of outflows with $458.77 million in inflows. BlackRock’s iShares Bitcoin Trust was the clear leader, accounting for over 70% of the total inflows. This reflects strong demand for its product, especially compared to competitors like Fidelity and Grayscale.

The inflows suggest that institutional investors are beginning to reallocate capital into Bitcoin after a period of outflows in December. BlackRock’s IBIT attracted over $324 million in a single week, highlighting its dominance in the market. Fidelity’s FBTC added $105.78 million, while Bitwise’s BITB and Ark & 21shares’ ARKB also saw significant inflows.

Why Did This Happen?

The inflows into U.S. spot Bitcoin ETFs come after a period of volatility in late December. Bitcoin consolidated below $92,000 during those final days, with institutional flows stabilizing the price amid thin holiday liquidity. Analysts note that the inflows are partly a result of balance sheet resets at the start of the year, as institutions prepare for new investment strategies.

BlackRock’s iShares Bitcoin Trust has consistently attracted the most inflows due to its low expense ratio and high liquidity. The fund charges 0.25%, significantly lower than Grayscale's 1.50%, making it more attractive to institutional investors.

How Did Markets Respond?

Bitcoin’s price has remained range-bound, oscillating between the mid-$87,000s and low-$90,000s. As of January 5, the price was around $93,000, supported by ETF inflows but not showing strong momentum.

Ether also saw inflows into ETFs, with Grayscale’s ETHE leading with $103.78 million in a single week. This suggests that institutional demand for Ethereum is stabilizing, though the overall performance remains cautious.

XRP ETFs continued to show steady momentum, adding $43.16 million in inflows. Bitwise’s XRP and Franklin’s XRPZ were among the top performers in the altcoin space.

What Are Analysts Watching Next?

Analysts caution that while ETF inflows provide price support, onchain metrics remain weak. The 30-day change in Bitcoin’s realized capitalization turned negative in late December, ending one of the longest periods of positive inflows.

Long-term holders have started realizing losses despite stable prices. This trend is seen as a sign of internal market fatigue, with investors exiting not out of fear but out of exhaustion.

The current phase appears to be a transition from a flow-driven market to one that tests patience. Sustained upside would likely require renewed capital formation onchain rather than just secondary market demand.

BlackRock’s dominance in the Bitcoin ETF space raises concerns about market concentration. The fund holds 85% of U.S. ETF-held Bitcoin with Coinbase Custody, introducing operational risks that investors should monitor.

The geopolitical landscape also remains a factor. Rumors about Venezuela’s Bitcoin reserves have not triggered panic selling, but analysts warn that any confirmed supply shock could significantly affect the market.

With the inflows and price stability, the risk-reward ratio appears favorable for momentum traders using the iShares Bitcoin Trust ETF. However, continued onchain weakness could signal caution in the coming weeks.

Institutional investors are expected to maintain a cautious stance as they wait for clearer signals from macroeconomic data. The incoming data in early January will be crucial in shaping rate expectations and broader market sentiment.