Bitcoin ETF Set for Record-Breaking Inflows in 2025, with January Already Surpassing Expectations
Bitcoin exchange-traded funds (ETFs) have kicked off 2025 with a bang, pulling in nearly $5 billion in inflows during January, signaling strong growth for the year ahead. According to Matt Hougan, the Chief Investment Officer at Bitwise, January’s figure of $4.94 billion annualizes to approximately $59 billion, far surpassing the $35.2 billion accumulated by Bitcoin ETFs throughout 2024.
Despite some volatility in month-to-month inflows, Hougan is optimistic that Bitcoin ETFs will exceed $50 billion in inflows by the end of this year. In fact, Bitwise had initially projected in December that 2025’s Bitcoin ETF inflows would surpass those of 2024, and with January’s stellar performance, it appears this prediction is well on track.
Top Bitcoin ETFs Leading the Charge
The BlackRock iShares Bitcoin Trust ETF (IBIT) led the charge with $3.2 billion in inflows during January, making it the top performer among Bitcoin ETFs. Close behind was Fidelity’s Wise Origin Bitcoin Fund (FBTC), which saw $1.3 billion in inflows. Meanwhile, Bitwise’s Bitcoin ETF (BITB) secured the fifth spot, taking in over $125 million.
The performance of Bitcoin ETFs is of particular interest to institutional investors, and Hougan and his research team at Bitwise expect that 2025 will see even larger inflows. Notably, wealth managers and institutional investors have yet to fully tap into Bitcoin ETFs, with the world’s largest wirehouses still withholding access to many clients. However, this is expected to change soon, potentially unlocking trillions of dollars for Bitcoin ETFs.
Why the Surge?
According to Hougan and Ryan Rasmussen, head of research at Bitwise, the first year of an ETF typically sees the slowest growth. For comparison, gold ETFs saw just $2.6 billion in flows in their first year (2004) but more than doubled to $5.5 billion in 2005. The early momentum in Bitcoin ETFs suggests that their trajectory will follow a similar pattern, with much larger inflows in the coming years.
The latest data on Bitcoin ETF inflows highlights the growing institutional interest in digital assets, with BlackRock and Fidelity spearheading the movement. As more large financial institutions begin to allocate funds into Bitcoin ETFs, the sector could be poised for significant expansion.
As the Bitcoin ETF market continues to gain traction, all eyes will be on whether these funds can sustain their impressive performance throughout 2025 and beyond.
