U.S. spot Bitcoin ETFs experienced a noticeable increase in investment in January, surpassing the inflows of December.
According to recent data, approximately $5.25 billion flowed into the 12 Bitcoin ETFs in January, compared to $4.53 billion in the previous month. This surge in capital was primarily driven by BlackRock’s IBIT, which attracted $3.23 billion, resulting in its assets reaching $59.39 billion by the end of the month, a rise of $7.67 billion.
Fidelity’s FBTC, the second-largest ETF in terms of assets, also saw significant inflows, with an addition of $1.28 billion, bringing its total to $21.76 billion.
Analysts, including Matt Hougan, Chief Investment Officer at Bitwise, predict that the 12 ETFs could collectively attract more than $50 billion in inflows over the course of 2025, despite monthly fluctuations.
Despite these inflows, the price of Bitcoin experienced a dip, dropping by 4.2% to $95,500, with broader market conditions contributing to the decline. Similarly, Ether experienced a 16.5% drop, trading at $2,591.
Although there was initial optimism surrounding the re-election of Donald Trump, crypto sentiment has cooled, possibly due to the lack of specific cryptocurrency-related comments since his return to office.