Bitcoin ETF Inflows Reach October High as Institutional Demand Returns

U.S. spot Bitcoin ETFs reported over $750 million in net inflows on January 13, the highest daily total since October 2025. Fidelity's FBTC led with $351 million, followed by Bitwise's BITB with $159 million and BlackRock's IBIT with $126 million. The inflows signal the return of institutional demand.

Analysts attribute the strong inflows to improving macroeconomic clarity and regulatory developments. The latest U.S. consumer price index data showed cooling inflation, raising expectations for potential interest rate cuts. This environment has increased investor appetite for risk assets, including Bitcoin.

The U.S. Senate Banking Committee is also preparing for a markup of the crypto market structure bill, which could bring further regulatory clarity. This development has heightened investor confidence, contributing to renewed capital inflows into crypto ETFs.

Why Did This Happen?

Bitcoin ETF inflows reflect a resurgence of institutional demand. Investors are reallocating capital after a period of caution and de-risking during the previous quarter. The inflows have been concentrated in major funds, with smaller funds reporting flat flows.

Institutional buying has been driven by several factors. Sustained ETF inflows have absorbed Bitcoin supply beyond daily miner output, creating a structural tailwind. Additionally, improving inflation data and progress on U.S. crypto legislation have reduced regulatory uncertainty.

The market structure shift is also notable. Spot market demand has driven recent price action, rather than leverage, indicating a healthier market dynamic.

How Did Markets React?

Bitcoin's price rose 3% to trade near $94,610 in the 24 hours following the inflows. The OG coin has posted 16/30 green trading days, indicating steady upward pressure.

Ethereum also saw renewed interest, with Ethereum-based investment products pulling in $130 million in net inflows. BlackRock's ETHA led with $53.31 million, followed by Grayscale's Ethereum fund with $35.42 million according to data.

Retail investor sentiment has also improved. The Crypto Fear and Greed Index moved above the neutral 50 level, reflecting a shift toward moderate risk-taking. Bitcoin broke above key resistance at $94,043, opening the door for further momentum-driven gains.

What Are Analysts Watching Next?

Analysts are watching for continued ETF inflows as a sign of sustained institutional participation. Vincent Liu, CIO of Kronos Research, emphasized that sustained ETF demand has played a central role in recent price strength. He noted that absorption of supply and reduced short positioning support the rally.

The U.S. Senate Banking Committee's markup of the crypto market structure bill is also a key event. The legislation is expected to amend and vote on measures that will bring further clarity to digital assets. This could influence investor confidence.

Market participants are also monitoring inflation data and Federal Reserve policy. Lower real-rate expectations support risk assets by reducing the opportunity cost of holding non-yielding assets like Bitcoin. Broader equity markets have also advanced, suggesting the crypto rally is part of a larger shift in risk sentiment.

In the near term, technical indicators suggest a cautious outlook. The overbought RSI and MACD histogram indicate that the market may experience consolidation or correction. Investors are advised to monitor key support and resistance levels as well as short-term liquidity conditions.