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Ruholamin Haqshanas
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Ruholamin Haqshanas
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US spot Bitcoin exchange-traded funds (ETFs) saw inflows totaling nearly $5 billion in January, a strong start that could push them toward $50 billion or more by the end of the year, according to Bitwise CIO Matt Hougan.
In a recent post on X, Hougan noted that spot Bitcoin ETFs absorbed $4.94 billion in January alone, an annualized pace of approximately $59 billion.
He compared this to $35.2 billion in total inflows during 2024, emphasizing the growing investor appetite for Bitcoin-backed investment products.
Bitcoin ETFs to Exceed $50 Billion by End of 2024
Despite noting month-to-month fluctuations, Hougan remains confident that Bitcoin ETFs will exceed $50 billion in inflows by the end of 2024.
Among the major players, BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the market, attracting $3.2 billion in net inflows for January.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with nearly $1.3 billion in net inflows, based on Farside Investors data.
Other ETFs saw varied levels of inflows, with Grayscale’s Bitcoin Mini Trust ETF (BTC) pulling in $398.5 million, and Bitwise’s Bitcoin ETF (BITB) accumulating over $125 million.
Bitwise executives Hougan and Ryan Rasmussen previously projected that 2025 would surpass 2024 in ETF inflows, citing a shift toward institutional adoption.
They noted that the first year of an ETF is typically its slowest, drawing comparisons to gold ETFs, which saw $2.6 billion in inflows in their first year (2004) before doubling to $5.5 billion in 2005.
The report also pointed out that major financial advisory firms (wirehouses) have yet to fully engage with Bitcoin ETFs, an expected shift that could unlock trillions of dollars in potential investment.
With demand for Bitcoin ETFs rising and institutional interest gaining momentum, 2024 is shaping up to be a transformative year for Bitcoin investment vehicles.
Gary Gensler’s Departure Sparks Rise in Crypto ETF Filings
Last week, asset management firm 21Shares officially filed with the U.S. Securities and Exchange Commission (SEC) to introduce a spot Polkadot ETF.
The filing comes at a pivotal time for the SEC and cryptocurrency ETFs, following the resignation of SEC Chair Gary Gensler on Jan. 20.
Gensler, known for his cautious stance on crypto regulations, stepped down amid increasing pressure for greater regulatory clarity in the digital asset space.
Just recently, Tuttle Capital Management filed applications for ten cryptocurrency-based leveraged ETFs, including funds tied to popular meme coins.
Analysts suggest the filings are part of a broader strategy to test the boundaries of an SEC under Trump-era crypto-friendly regulators.
The proposed ETFs include leveraged funds that aim to deliver twice the returns of their underlying assets, such as the meme coins Official Trump (TRUMP) and Melania Meme (MELANIA).
Furthermore, Osprey Funds and REX Shares have filed for meme coin ETFs covering Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK) on Jan. 21.
Meanwhile, the SEC has also granted initial approval for Bitwise Asset Management’s Bitcoin and Ethereum ETF, which would track both BTC and ETH in a single fund.
