ETFs show investor confidence is recovering
The latest changes in Bitcoin investment came after the Fed's last meeting in 2024. Fed Chairman Powell warned that inflation problems in 2025 could limit interest rate cuts, a comment that led to a sell-off in risk assets including Bitcoin.
In the next four trading days, U.S. investors withdrew more than $1.5 billion from Bitcoin ETFs, especially on December 27, 30 and January 2, when the outflow was very obvious.
However, the situation reversed on January 3, 2025, when Bitcoin ETFs recorded a net inflow of $908.1 million, the best performance since November 2024.
Fidelity's FBTC fund led the way, attracting $357 million in new funds, followed by BlackRock's iShares Bitcoin Trust (IBIT), which attracted $253.1 million. Ark Invest's ARKB fund also performed strongly, receiving $222.6 million in investment.
This influx of funds reflects that investors are beginning to re-evaluate the strategic value of Bitcoin amid ongoing economic uncertainty, and the recovery of ETF investment shows their long-term confidence in Bitcoin, especially as an asset to hedge against volatility in traditional financial markets.
