Bitcoin ETF Inflows: Bitwise CIO Forecasts $50B Surge in US

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Bitwise’s chief investment officer (CIO) Matt Hougan says US spot Bitcoin ETFs recorded $15 billion in net inflows over January, and subsequently predicted inflows for the investment products will reach over $50 billions

In a recent post on X, Hougan disclosed that spot Bitcoin ETFs pulled in a remarkable $4.94 billion in January 2025 alone, indicating a promising year ahead. If this inflow trend persists, annual inflows for these BTC investment products might reach an incredible $59 billion, which is much more than that of 2024’s $35.2 billion, the Bitwise CIO said.

Institutional Interest Drives Growth

The increase in inflows is not a coincidence, it shows increased institutional interest in Bitcoin as a mainstream asset. Hougan stated that the overall trend indicates that BTC ETFs will end the year north of $50 billion, though month-to-month volatility is expected.

Backing this optimism, Bitwise’s December research, co-authored by Hougan and Bitwise’s Head of Research Ryan Rasmussen, predicted that ‘Bitcoin ETF inflows will exceed those of 2024’. This growth is credited to institutional investors ‘doubling down’ on their Bitcoin holdings as they grow more confident in the long-term potential of the leading digital asset.

Also read: 21Shares Files for Spot Polkadot ETF Amid Growing Crypto ETF Interest

BlackRock and Fidelity Lead the Bitcoin ETF Charge

January inflow data reveals important participants who dominate the Bitcoin ETF space. BlackRock’s iShares Bitcoin Trust ETF (IBIT) has the largest net inflows, totaling $13.2 billion. Fidelity Wise Origin Bitcoin Fund (FBTC) followed closely to attract $1.3 billion in net inflows.

The Bitwise Bitcoin ETF (BITB) remained strong in fifth place and attracted more than $125 million. Meanwhile, the Grayscale Bitcoin Mini Trust ETF (BTC) performed well, bringing in approximately $398.5 million. These numbers show that significant financial institutions not only participate in but also dominate the Bitcoin ETF market.

Also read: How to Buy Bitcoin on eToro: A Step-by-Step Guide

Hougan and Rasmussen believe that Bitcoin ETFs are only getting started. Historically, the first year of any ETF is typically the slowest. For example, gold ETFs attracted $2.6 billion in their first year (2004). However, in the following year, the inflows for these Gold-centric funds more than doubled to $5.5 billion. Applying this pattern to Bitcoin funds suggests that the best is yet to come.

Furthermore, brokers and financial management businesses have yet to completely capitalize on Bitcoin ETFs. Hougan predicts that if these institutions are allowed to invest in these funds, Bitcoin ETF inflows will skyrocket and lead to trillions of dollars entering the crypto market.

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Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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