Bitcoin ETFs Experience Dramatic Rebound
A Shift in Investor Sentiment
After weeks of persistent outflows, bitcoin ETFs saw a remarkable turnaround on Friday, with spot funds pulling in a staggering $908.1 million, the largest daily haul since late November. This sudden influx of capital marked a significant reversal from the previous day’s withdrawal of $242.3 million.
Regulatory Hopes and Inflation Concerns
The rebound is attributed to investors’ growing optimism about a crypto-friendly administration and the increasing use of bitcoin as an inflation hedge. With the Federal Reserve expecting inflation to reach 3% in 2025, above its 2% target, investors are betting on bitcoin to protect their assets.
Bitcoin’s Resurgence
Bitcoin has resumed its upward climb, currently trading around $102,000, up 11% over the past week. Although still below its all-time high of $108,268, the cryptocurrency’s value is expected to continue rising.
ETF Holdings Reach New Heights
The 11 spot bitcoin ETFs now hold 1.1 million bitcoin, equivalent to around 5.5% of the circulating supply. The Fidelity Wise Origin Bitcoin Fund (FBTC) led Friday’s inflows with $357 million, followed closely by BlackRock’s iShares Bitcoin Trust (IBIT) with $253.1 million.
Other ETFs See Significant Inflows
The ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) also saw substantial inflows, with $222.6 million and $61.1 million, respectively. The VanEck Bitcoin ETF (HODL) added $5.6 billion, while the Grayscale Bitcoin Mini Trust (BTC) gained $8.7 million in new assets.
A Promising Start to 2025
The recovery has pushed FBTC’s year-to-date inflows to $393.2 million, establishing an early lead in 2025. With their first full year of trading approaching, spot bitcoin ETFs have accumulated $35.9 billion in total assets, making them a significant player in the cryptocurrency market.
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