Spot Bitcoin ETFs Start 2026 Strong with $1.2B in Flows in Two Days

U.S. spot Bitcoin ETFs have attracted $1.2 billion in net inflows in the first two trading days of 2026, according to multiple sources. This marks a significant turnaround after months of outflows in late 2025. The inflows are being attributed to a combination of the new year's 'clean-slate effect' and broader institutional appetite as reported.

BlackRock's iShares Bitcoin Trust (IBIT) led the inflow activity, followed by Fidelity's FBTC and others. These funds saw substantial demand, pushing Bitcoin's price above $90,000 in early 2026. Analysts suggest that this momentum, if sustained, could lead to $150 billion in annual inflows.

Ethereum and XRP ETFs also reported positive flows in the same period. Ethereum spot ETFs recorded $168 million in inflows, while XRP ETFs saw a surge to $46 million on Monday alone according to data. These figures indicate a broader recovery across the crypto market, with institutional and retail investors showing renewed interest as noted.

Why Did This Happen?

The inflow surge follows a period of market consolidation and regulatory clarity in the U.S. Institutional investors are increasingly viewing Bitcoin as a strategic asset, supported by favorable regulatory developments. Morgan Stanley filed for its own spot Bitcoin and Solana ETFs, signaling a broader institutional embrace of crypto products.

Bitcoin ETF inflows in 2025 totaled $21.4 billion, but the early 2026 figures suggest a stronger and more sustained institutional interest. This is further supported by Bitcoin's price action, which has remained above critical support levels in early January.

How Did Markets React?

Bitcoin's price has held above $93,000 since early January 2026, showing resilience amid profit-taking. The ETF inflows have provided a floor for price movements, as institutional demand absorbs circulating supply. Ethereum and XRP have also benefited from ETF inflows, though Ethereum's price movement has been more subdued compared to Bitcoin.

Market analysts point to ETF inflows as a key driver of Bitcoin's performance in 2025 and early 2026. The inflows create a structural demand for Bitcoin that can support price appreciation if supply constraints persist. This dynamic could create a long-term imbalance between demand and available supply.

What Are Analysts Watching Next?

Analysts are closely monitoring the sustainability of the inflow trend. If inflows continue at the current pace, the $150 billion annual projection becomes more plausible. However, short-term fluctuations remain a risk, with some ETFs, like Fidelity's, showing signs of outflows midweek.

Regulatory developments also remain a key factor. With a more crypto-friendly regulatory backdrop at the SEC, new filings and approvals could further accelerate institutional adoption. Morgan Stanley's recent ETF filings indicate that major Wall Street firms are preparing for larger crypto allocations.

Bitcoin's price action and ETF inflows are also being watched for signs of broader market stability. A sustained bullish trend could depend on macroeconomic conditions and regulatory clarity. Meanwhile, Ethereum's validator exit queue has dropped to zero, indicating renewed institutional staking activity.

Investors are advised to monitor ETF flows, regulatory changes, and macroeconomic indicators as key drivers of Bitcoin and other crypto price movements in the first quarter of 2026.