Rebound Alert: US Bitcoin ETF Interest Picks Up Speed In 2025

Christian Encila

5 months ago

3 mins read

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Demand for US Bitcoin ETFs has significantly increased as we enter 2025, signifying a notable reversal following a lackluster start to the year.

Based on recent figures from Glassnode, net inflows for the week ending January 6 amounted to 17,567 BTC, equivalent to around $1.7 billion.

This increase surpasses the weekly average inflows of 15,900 BTC documented in the final quarter of 2024 and indicates a resurgence of investor enthusiasm.

A Turbulent Journey Of Inflows

Inflows into Bitcoin ETFs have shown an erratic pattern. These inflows showed notable fluctuations in late 2024. In September, there was a significant decline as Bitcoin prices dropped below $64,000, leading to large withdrawals.

Nevertheless, things began to change by October. Inflows increased dramatically; in few weeks, they topped 24,000 BTC. With the average weekly inflow settling at around 15,900 BTC, the increase continued into November and December, demonstrating the high demand for Bitcoin investments.

After a slow start to the year, demand for US spot #Bitcoin ETFs has normalized. In the week of January 6, inflows reached 17,567 #BTC ($1.7B), which is slightly higher than the weekly average of 15.9K $BTC ($1.35B) from October to December 2024: https://t.co/0Cpfm8lpak pic.twitter.com/u4FksOSLuZ

— glassnode (@glassnode) January 13, 2025

As the price of Bitcoin increased, so did ETF inflows. In December 2024, the most popular digital asset in the world reached a record-breaking high of $108,135.

This association suggests that as more people switched to exchange-traded funds, investors’ confidence in Bitcoin’s worth grew, leading to a positive market sentiment.

Bitcoin ETFs: Who Possesses The Most?

The total holdings of US spot Bitcoin ETFs as of early January 2025 are approximately 1.13 million BTC. Grayscale has 204,300 BTC, Fidelity holds 205,488 BTC, and BlackRock has 559,673 BTC, making it the largest holding.

In 2024, BlackRock’s Bitcoin ETF (IBIT) garnered attention by accumulating $37.25 billion in assets during its inaugural year, securing the third position on the Top 20 ETF Leaderboard for that year. This significant surge highlights the rising institutional demand for cryptocurrency-backed financial solutions.

Will 2025 Be A Good Year For ETFs?

Bitcoin ETFs look like they will do well in 2025. Experts in the field think that this year there may be a lot of new, innovative offerings on the market.

There will be at least 50 new bitcoin ETFs this year, according to Nate Geraci of the ETF Store. These will cover a wide range of strategies, such as covered call ETFs and Bitcoin-denominated equity ETFs.

BTC is now trading at $94,955. Chart: TradingView

Furthermore, there is conjecture that Bitcoin spot ETFs may soon exceed physical gold ETFs in asset size. This would represent a pivotal advancement in the development of digital assets as conventional investment instruments.

Such a change would highlight a rising confidence in Bitcoin as a valid store of value and investment tool, therefore challenging the long-held view of gold as the best hedge.

As financial institutions such as Vanguard investigate cryptocurrency ETF alternatives, it underscores a wider trend of acceptance and incorporation of cryptocurrencies into established financial systems.

Featured image from Reuters, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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