Bitcoin ETF Sees $1.5B Cumulative Inflows Year-to-Date, Buying Pressure May Have Gradually Absorbed Selling Pressure

Bitcoin spot exchange-traded funds (ETFs) saw a significant surge in inflows during early January 2026, reversing earlier outflows and signaling renewed institutional and retail interest. Over three days, these funds attracted more than $1.7 billion, according to data from SoSoValue. This came after earlier outflows of $1.4 billion between January 6 and 9. Bitcoin's price also climbed to two-month highs, reaching $97,000, contributing to a bullish sentiment shift.

BlackRock's iShares Bitcoin ETF (IBIT) led the inflow trend with $648 million in net inflows on January 13, the largest single-day inflow for a Bitcoin ETF in 2026 so far. Fidelity's Wise Origin Bitcoin Fund (FBTC) and Bitwise Bitcoin ETF (BITB) also contributed, drawing $125.4 million and $10.6 million, respectively.

Total net inflows into U.S. spot Bitcoin ETFs reached $1.5 billion since the start of the year, reversing a trend of mixed sentiment and mild inflows seen in late 2025. This increase in demand aligns with broader institutional adoption of digital assets, driven by the regulatory clarity provided by the approval of spot Bitcoin ETFs in January 2024.

Why Did This Happen?

Bitcoin's price rally to $97,000 was a major catalyst for renewed inflows into ETFs. The move coincided with a shift in market sentiment, reflected in the Crypto Fear & Greed Index entering "greed" territory for the first time since October. This price action, combined with a reduction in selling pressure from profit-taking, signaled a broader confidence in Bitcoin's long-term value.

Institutional rebalancing after year-end tax-loss harvesting and improved macroeconomic sentiment also played a role, as noted by Marcin Kazmierczak of RedStone. He attributed the inflows to growing recognition of ETFs as a structured, regulated investment vehicle for Bitcoin.

How Did Markets React?

The Bitcoin price move triggered notable activity in derivatives markets, with $360 million in short liquidations in the past 24 hours, according to Coinglass data. The largest single liquidation was on HTX, wiping out a $34.9 million BTC-USDT position. This suggests that Bitcoin's price rise caught many short sellers off guard.

The broader crypto market also responded positively, with total market capitalization rising by 3.3% to $3.32 trillion. Altcoins like XRP, Solana, and Dogecoin saw gains of 2–6%, driven in part by optimism over a proposed crypto market structure bill that could provide clearer regulatory status for digital assets.

What Are Analysts Watching Next?

Analysts are closely watching whether the recent inflows into Bitcoin ETFs can be sustained. Aurelie Barthere of Nansen noted that a breakout above $91,000 had triggered the recent rally but emphasized the need for continued institutional demand to maintain momentum.

Ethereum and XRP ETFs also saw strong inflows in early January, adding $175 million and $11 million on January 13, respectively. These figures indicate that investor confidence is spreading beyond Bitcoin to other major cryptocurrencies.

JPMorgan analysts expect crypto inflows to rise further in 2026, driven by institutional investors and the passage of additional regulations like the Digital Asset Market CLARITY Act. They believe this will trigger more institutional adoption and activity in related sectors like stablecoin issuers and blockchain infrastructure.

The sustainability of these inflows will depend on broader macroeconomic conditions, particularly Federal Reserve policy. As of January 15, 2026, futures data showed a 95% probability that the Fed would hold rates steady in its next meeting, a shift from the 44% chance of a rate cut in mid-January. This uncertainty remains a key factor for investors evaluating long-term exposure to crypto ETFs.