Bitcoin ETFs Surge in 2025: $50 Billion Inflows Expected

Bitcoin ETFs in the U.S. have started 2025 with a strong momentum, attracting nearly $5 billion in inflows during January alone. Matt Hougan, Chief Investment Officer at Bitwise, noted this surge in a February 1 post on X, projecting that the funds could attract over $50 billion in inflows by year-end if current trends persist.

Hougan acknowledged potential month-to-month volatility but expressed confidence that Bitcoin ETFs would surpass $50 billion by the close of 2025, positioning them as a dominant investment vehicle for both institutional and retail players.

According to data from Farside Investors, BlackRock’s iShares Bitcoin Trust ETF (IBIT) secured 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 reveal that ETFs often see subdued initial activity followed by exponential growth. Hougan and Bitwise research head Ryan Rasmussen emphasized 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.

Hougan and Rasmussen predict that institutional investors will significantly ramp up their exposure to Bitcoin ETFs in 2025. One reason for this expectation is the anticipated involvement of major financial advisory firms. “The world’s largest wirehouses have yet to unleash their army of wealth managers,” they noted, suggesting that once restrictions preventing access to Bitcoin ETFs are lifted, the potential market exposure could extend to trillions of dollars.