Bitcoin ETFs Witness One of the Strongest Inflow Sessions in History

efined U.S. spot Bitcoin exchange-traded funds (ETFs) attracted $753.7 million in net inflows on January 13, 2026, the strongest daily demand since early October. Institutional buyers are returning after a period of muted activity, with major funds like Fidelity's FBTC, Bitwise's BITB, and BlackRock's IBIT driving much of the demand.

The inflows coincided with a rise in Bitcoin's price, which pushed the asset to a two-month high of nearly $97,000. This marked the 16th consecutive green day for Bitcoin, indicating sustained upward pressure from both ETF flows and broader market sentiment.

Ethereum ETFs also saw robust activity, with net inflows totaling $130 million. BlackRock's ETHA fund led the way with $53.31 million, followed by Grayscale's Ethereum fund with $35.42 million. Analysts attribute the broader trend to improved risk appetite and expectations for future interest rate cuts.

Why Did This Happen?

Institutional demand for Bitcoin ETFs has resurged following a period of caution in late 2025. According to Nick Ruck, director at LVRG Research, the recent inflows indicate a reset after last quarter's pullback. He described the renewed buying activity as a sign of investor confidence in Bitcoin as a long-term asset.

Several factors contributed to the inflows. First, ETF demand absorbed available Bitcoin supply beyond daily miner output, creating structural support for prices.

Second, improved inflation data raised expectations for future rate cuts, which could reduce the cost of holding non-yielding assets like Bitcoin according to market analysis.

Regulatory developments also played a role. Progress on U.S. crypto legislation reduced uncertainty for institutional investors. This allowed for greater confidence in allocating capital to regulated investment vehicles like ETFs as reported.

How Did Markets Respond?

Bitcoin's price climbed over 3.25% in the past 24 hours, reaching $95,084. The rally is supported by sustained ETF inflows, which have helped reduce short positioning and tighten available supply according to market data.

Ethereum followed a similar pattern, with prices rising over 5% to $3,293. Broader market sentiment remained positive, driven by both institutional and retail activity. Vincent Liu, chief investment officer at Kronos Research, said the recent price action was driven by spot demand rather than leverage.

Grayscale's Bitcoin Trust (GBTC) also saw a reversal in outflows, with $18.80 million in inflows. This signals a potential stabilization of the fund's investor base after months of selling pressure.

What Are Analysts Watching Next?

Market participants are closely monitoring whether the recent inflows will continue into the first quarter. Marcin Kazmierczak, co-founder of RedStone, noted that ETF flows have become more volatile, with elevated interest rates keeping opportunity costs high for non-yielding assets like Bitcoin as market analysis shows.

Analysts expect institutional demand to remain selective and cautious in the near term. However, the long-term outlook remains bullish. Bitwise forecasts that ETFs will absorb more Bitcoin supply than miner output in 2026, which could create lasting support for prices.

Regulatory developments are also a key focus. The U.S. Securities and Exchange Commission (SEC) continues to monitor ETF activity for compliance and investor protection. The success of Bitcoin ETFs may influence future regulatory decisions regarding other crypto-based exchange-traded products according to industry reports.

In the broader market, optimism is growing around a new draft crypto market structure bill that could grant clearer regulatory status to altcoins like XRP and Solana. If passed, the legislation could drive additional institutional inflows into the sector as analysts note.

Bitcoin ETFs are increasingly viewed as a bridge between traditional finance and digital assets. Their ability to provide regulated, liquid exposure to Bitcoin without the complexities of direct custody has made them attractive to both institutional and retail investors according to market analysis.