Spot Bitcoin exchange-traded funds (ETFs) in the US saw an impressive $5 billion in inflows during January 2025.
According to Matt Hougan, Chief Investment Officer at Bitwise, this strong start could see Bitcoin ETFs reaching over $50 billion by the end of 2024, at an annualized pace of $59 billion.
This surge in interest comes amid rising demand for Bitcoin-backed investment products. In January alone, BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the way with $3.2 billion in inflows, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $1.3 billion.
Other ETFs like Grayscale’s Bitcoin Mini Trust (BTC) and Bitwise’s own Bitcoin ETF (BITB) also saw significant inflows, contributing to the growing momentum in the sector.
Despite month-to-month fluctuations, Hougan remains confident that Bitcoin ETFs will surpass $50 billion in 2024, driven by increasing institutional adoption.
Historically, the first year of an ETF sees slower growth, but with more firms getting involved, Bitcoin ETFs are expected to gain more traction over time.
The broader trend of increasing institutional interest in Bitcoin ETFs is likely to continue, with large financial advisory firms still on the sidelines. When these firms engage more, the total market for Bitcoin ETFs could see even higher inflows.
As the year progresses, experts are watching closely to see whether Bitcoin ETFs can maintain this pace and bring in even more capital, solidifying 2024 as a transformative year for Bitcoin investment products.