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Bitcoin ETFs Poised for $50 Billion Inflows in 2025

Coin WorldMonday, Feb 3, 2025 8:06 am ET
1min read

Bitcoin ETFs are poised to attract a significant influx of capital in 2025, with projections suggesting that inflows could reach $50 billion by the end of the year. This bullish outlook is driven by the strong performance of these funds in the early months of 2025 and the growing interest from both institutional and retail investors.

In January alone, U.S. spot Bitcoin ETFs recorded nearly $5 billion in inflows, which, if sustained, would annualize to around $59 billion. This impressive start to the year builds on the momentum gained in 2024, when spot Bitcoin ETFs attracted a total of $35.2 billion, surpassing initial forecasts of $15 billion.

Matt Hougan, chief investment officer at Bitwise, has expressed confidence that Bitcoin ETFs will surpass the $50 billion mark by the close of 2025. Despite acknowledging potential month-to-month volatility, Hougan believes that these funds will continue to be a dominant investment vehicle for both institutional and retail players.

The surge in inflows can be attributed to the leading Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) securing the lion’s share of January’s inflows, pulling in a staggering $3.2 billion. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $1.3 billion in net inflows. Grayscale’s Bitcoin Mini Trust ETF (BTC) ranked fourth with around $398.5 million, while Bitwise’s own Bitcoin ETF (BITB) captured $125 million, making it the fifth largest in terms of inflows for the month.

Historical trends suggest that ETFs often experience subdued initial activity followed by exponential growth. Hougan and Bitwise research head Ryan Rasmussen highlighted this pattern in a December report, citing the example of gold ETFs which attracted $2.6 billion in their first year (2004) before more than doubling to $5.5 billion the following year.

Institutional adoption is expected to drive future growth in Bitcoin ETFs. Hougan and Rasmussen predict that institutional investors will significantly ramp up their exposure to these funds in 2025. One reason for this expectation is the anticipated involvement of major financial advisory firms, which could potentially extend the market

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Harris Donald
02/03

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