Bitcoin ETFs Roar Into 2026 Like a Lion - $1.2B in Two Days Signals $150B Wall of Money

Bitcoin ETFs kicked off 2026 with a surge in demand, pulling in $471 million in fresh capital on the first trading day of the year. This marked a reversal from the previous week, when the ETF group shed $348 million. The inflows signaled renewed investor appetite after a slow end to 2025.

BlackRock’s iShares Bitcoin Trust (IBIT) led the sector, capturing approximately $287 million in new capital. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $88 million, while the Bitwise Bitcoin ETF recorded inflows of $41.5 million. The strong performance of these funds helped drive Bitcoin above $90,000.

Ethereum ETFs also saw positive inflows, with Grayscale’s Ethereum Trust (ETHE) leading the group with $53.69 million in inflows. Smaller market-cap assets, including XRP and Solana, also posted gains, reflecting broader market participation.

Why Did This Happen?

The surge in Bitcoin ETF inflows came amid a broader recovery in the cryptocurrency market. Bitcoin climbed above $90,000, while Ethereum surged past $3,100. The total crypto market capitalization rose approximately 2% to $3.1 trillion in the past 24 hours.

The inflows also coincided with regulatory developments in the U.S. crypto space. Morgan Stanley filed a Form S-1 with the U.S. Securities and Exchange Commission to launch a spot Bitcoin ETF, named the Morgan Stanley Bitcoin Trust. The proposed fund would hold Bitcoin directly rather than relying on futures, derivatives, or leverage.

How Did Markets Respond?

The strong inflows into Bitcoin and Ethereum ETFs suggest that institutional investors are reallocating capital after a period of tax-loss harvesting. This shift reflects a growing appetite for regulated digital asset investment products.

Ethereum ETFs, despite a slight decline in inflow volume to $174 million from $174 million the previous week, still demonstrated resilience to price fluctuations. The inflows into Ethereum ETFs indicate that investors remain confident in the asset’s long-term potential.

The positive sentiment extended to altcoin ETFs as well. XRP ETFs recorded $13.59 million in inflows, while Solana-based ETFs added $8.53 million. Dogecoin ETFs saw a modest inflow of $2.3 million, marking the highest single-day figure for that specific asset class since its inception.

What Are Analysts Watching Next?

Analysts are closely monitoring the regulatory landscape for further developments. The SEC's approval of spot Bitcoin ETFs in January 2024 marked a significant milestone for the industry. Since then, the ETFs have attracted over $48 billion in net inflows, representing a meaningful share of Bitcoin’s total market value.

Morgan Stanley’s entry into the spot Bitcoin ETF market signals a shift by large banks from distributing third-party crypto products toward issuing their own according to analysis. This trend reflects growing institutional confidence in regulated crypto investment products and the maturation of the digital asset market.

Looking ahead, industry analysts expect continued inflows into crypto ETFs, assuming favorable regulatory developments. The Federal Reserve’s anticipated interest rate cuts could further boost risk appetite for digital assets. Analysts also warn that closures may emerge toward the end of 2026 for under-subscribed products that fail to attract durable assets.