Bitcoin ETFs’ Inflows May Surpass $50B in 2025

Bitwise analysts have asserted that IBIT from BlackRock and FBTC from Fidelity are spearheading the current surge.

However, the implementation of Donald Trump’s tariff policies has caused volatility in the market, leading to a temporary decrease in Bitcoin’s value.

Some experts believe that in the long term, these tariffs could actually increase the value of Bitcoin as it serves as a hedge against a weakening US dollar. In a pioneering move, Utah is on track to establish the first Bitcoin reserve in the United States with support from both state and federal levels.

There is great anticipation among analysts for the potential success of spot Bitcoin exchange-traded funds (ETFs) in the US.

In January alone, these funds experienced a staggering $5 billion in inflows, setting the stage for a potentially record-breaking year in the industry.

According to Matt Hougan, investment chief at Bitwise, these inflows indicate the possibility of attracting over $50 billion by the end of 2025. He further points out that if the January influx of $4.94 billion is annualized, it would amount to about $59 billion, surpassing the $35.2 billion recorded in the entire year of 2024.

While acknowledging that fluctuations in monthly flows are expected, Hougan remains highly optimistic that Bitcoin ETFs will reach well above $50 billion by the end of the year.