Bitcoin and Ethereum ETFs Start the Year Strong: $1.1 Billion in Daily Inflows
US spot Bitcoin and Ethereum exchange-traded funds (ETFs) have attracted strong interest from investors since the beginning of the year, resulting in a total net inflow of $1.1 billion. This development has contributed to Bitcoin surpassing the $100,000 mark once again.
Bitcoin ETFs record strong inflows
In the US, spot Bitcoin ETFs have drawn attention with a total net inflow of $987.06 million as of January 6, 2025. This influx, led by Fidelity's Wise Origin Bitcoin Trust (FBTC), accounted for the largest share with a contribution of $370.24 million. BlackRock's IBIT saw an inflow of $209.08 million, while the ARK 21Shares Bitcoin ETF (ARKB) also stood out with an inflow of $152.92 million.
Other funds like the Grayscale Bitcoin Trust (GBTC) and Bitwise Bitcoin ETF (BITB) reported inflows of $73.79 million and $71.19 million, respectively. Among smaller funds, the VanEck Bitcoin ETF (HODL) achieved a net inflow of $17.33 million, Franklin Templeton Digital Holdings Trust (EZBC) $8.88 million, and Valkyrie Bitcoin Fund (BRRR) $8.38 million.
In the last two trading days, Bitcoin ETFs have recorded inflows exceeding $900 million. This is considered a significant recovery following the $2 billion outflow observed in the last week of December 2024.
Ethereum ETFs continue to rise
Ethereum ETFs have also demonstrated strong performance, recording a total net inflow of $128.72 million as of January 6. BlackRock's iShares Ethereum Trust (ETHA) led the way with an inflow of $124.11 million, while Fidelity's Ethereum Fund (FETH) contributed $4.62 million.
The total net inflows for Ethereum ETFs have reached $2.8 billion. However, Ethereum is lagging behind Bitcoin in price movements and is struggling to surpass the $4,000 level.
Institutional investor confidence on the rise
According to BRN's lead analyst Valentin Fournier, the $1.1 billion inflow into ETFs indicates a renewed confidence from institutional investors in cryptocurrencies. Fournier noted that these inflows have contributed to Bitcoin moving above the $100,000 mark. However, he emphasized that the same level of momentum has not been observed for Ethereum, highlighting a lack of upward momentum.
In conclusion, the strong inflows into Bitcoin and Ethereum ETFs reflect a positive sentiment in the crypto markets at the beginning of 2025. Meanwhile, critical resistance levels for both assets continue to be monitored.