1. A Record-Breaking Start to January
U.S. spot Bitcoin exchange-traded funds (ETFs) staged a remarkable comeback in early January, amassing a combined $1.9 billion in investments on January 3 and January 6. The inflows, reversing December’s downward trend, were driven by robust investor interest. January 6 alone accounted for $978.6 million, led by Fidelity Wise Origin Bitcoin Fund ($370.2 million), BlackRock’s iShares Bitcoin ETF ($209 million), and ARK 21Shares Bitcoin ETF ($153 million), as per Farside Investors data.
2. Smaller Players See Modest Gains
Smaller players also saw gains, with Bitwise Bitcoin ETF and Grayscale’s GBTC and BTC ETFs collectively adding $70 million, while VanEck and Franklin Bitcoin ETFs brought in $17.3 million and $8.9 million, respectively. However, ETFs from Invesco, Valkyrie, and WisdomTree reported stagnant flows that day.
3. Rebounding from December’s Decline
The January surge almost neutralized the $1.9 billion outflows recorded between December 19 and January 2. Over the past year, spot Bitcoin ETFs have attracted $36.9 billion in cumulative inflows since their inception.
4. BlackRock and Fidelity Lead the Pack
BlackRock’s iShares Bitcoin ETF continues to dominate with $37.4 billion in total investments, followed by Fidelity Wise Origin Bitcoin Fund with $12.4 billion. Conversely, Grayscale’s converted GBTC has endured $21.4 billion in net outflows.
5. Retail Investors Drive Demand
Retail investors remain the backbone of this resurgence, accounting for nearly 80% of demand, according to Binance’s October 25 report. Analysts, including Bitwise CIO Matt Hougan, anticipate a significant uptick in institutional involvement by 2025 as clearinghouses expand support for Bitcoin ETF trading.
6. Bullish Price Predictions for Bitcoin
This wave of optimism fuels ambitious Bitcoin price forecasts, with Bitwise predicting $200,000 and VanEck projecting $180,000 as potential highs for 2025.
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