Bitcoin ETFs Surge: $92M Inflows as Price Tops $105K

Bitcoin ETFs Record $92 Million Net Inflows

Bitcoin exchange-traded funds (ETFs) have seen a significant increase in net inflows, with a total of $92 million recorded on January 29. This surge in investment comes as Bitcoin's price continues to rise, reaching a new milestone of over $105,000. Meanwhile, Ethereum ETFs experienced net outflows of -$4.7 million on the same day.

Illinois and Indiana Move to Establish Strategic Bitcoin Reserves

Illinois and Indiana have introduced bills to establish strategic Bitcoin reserves, joining a growing list of U.S. states exploring the cryptocurrency as a financial asset. Illinois' bill, sponsored by State Representative John M. Cabello, aims to create a Bitcoin reserve fund managed by the State Treasurer. The bill highlights Bitcoin's potential as a hedge against inflation and economic volatility and seeks to accept donations from residents and government entities.

Indiana's bill, authored by state Representative Jake Teshka and co-authored by Representatives Shane Lindauer and Cory Criswell, focuses on both blockchain adoption and Bitcoin investment strategies. The bill directs the Department of Administration to explore how blockchain technology could improve government efficiency, data security, and consumer experience. It also allows for state-managed investment in approved Bitcoin ETFs.

Growing Adoption for Bitcoin Reserves

Cynthia Lummis, a U.S. Senator and longtime proponent of Bitcoin, has stated that the cryptocurrency could serve as a hedge against inflation and volatile economic conditions. She has called for public hearings on the establishment of a national Strategic Bitcoin Reserve. Additionally, the Governor of the Czech National Bank, Aleš Michl, has suggested allocating up to 5% of the CNB's reserves in Bitcoin, representing the first step toward institutional crypto adoption in Western Europe.

Texas Lieutenant Governor Dan Patrick has also made the establishment of a "Texas Bitcoin Reserve" a top legislative priority for 2025. Similar proposals from South Dakota and Kentucky may follow as state representatives prepare to introduce bills creating a Strategic Bitcoin Reserve.