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US Spot Bitcoin ETFs See Surge in Inflows for January

US spot bitcoin ETFs reported significant inflows in January, with leading funds like BlackRock's IBIT and Fidelity's FBTC driving growth amid market volatility and shifting investor sentiment.
Published on 2025-02-03

Spot Bitcoin ETFs Experience Strong Inflows

US spot bitcoin exchange-traded funds (ETFs) saw a notable increase in inflows during January, with the 12 tracked funds attracting approximately $5.25 billion. This represents a rise from December 2024's $4.53 billion, according to recent data.

Leading the Surge

BlackRock's IBIT led the charge, with $3.23 billion in inflows for January. Its net assets grew to $59.39 billion by month-end, reflecting a $7.67 billion increase. Fidelity's FBTC, the second-largest spot bitcoin ETF by net assets, also performed strongly, with $1.28 billion in inflows. Its net assets rose to $21.76 billion, up from $18.87 billion at the start of the month.

Expert Predictions and Market Outlook

Matt Hougan, chief investment officer at Bitwise, predicts that the 12 spot bitcoin ETFs could collectively surpass $50 billion in inflows by year-end. While acknowledging the volatility in monthly flows, Hougan remains optimistic about reaching this milestone.

Challenges in the Crypto Market

Despite the positive momentum in ETF inflows, the broader cryptocurrency market has faced recent setbacks. Bitcoin's value dropped 4.2% over 24 hours, trading at $95,500, while Ethereum fell 16.5% to $2,591 amid a market-wide sell-off.

Fading Sentiment in the Crypto Space

Initial optimism in the crypto market, fueled by President Donald Trump's return to office, has begun to waver. Research analyst Min Jung of Presto Research notes that the lack of crypto-specific commentary from President Trump since his inauguration has dampened enthusiasm.

This summary highlights the growth of spot bitcoin ETFs, expert predictions, and the current challenges facing the cryptocurrency market.

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