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Bitcoin ETF Inflows Drop 68% – What’s Next for 2025?

Bitcoin ETF inflows plunged 68% in a week, driven by Fed interest rate uncertainty and concerns over China’s AI platform DeepSeek. Will 2025 bring a rebound?

Bitcoin ETF Inflows Plummet Amid Market Uncertainty

Investor interest in spot Bitcoin ETFs dropped significantly over the past week. Inflows fell to $559.84 million, marking a 68% decline from the $1.76 billion recorded the previous week.

The decline came as investors reacted to:

  • Federal Reserve’s stance on interest rates
  • China’s launch of the AI platform DeepSeek
  • A broader risk-off sentiment in financial markets

Data from SoSoValue shows that Bitcoin ETFs started the week with outflows of $457.48 million, largely due to panic surrounding DeepSeek. The AI platform, seen as a low-cost competitor to ChatGPT, triggered a stock market sell-off and led to nearly $1 billion in crypto liquidations.

Market Rebounds After Fed Announcement

Despite weak inflows early in the week, Bitcoin ETFs saw a major turnaround after the Federal Open Market Committee (FOMC) meeting.

📉 Early Week Flows:

  • Jan 27-28: Outflows of $457.48 million
  • Jan 29-30: Modest inflows of $18.44 million & $92.09 million

📈 Post-Fed Rally:

  • Jan 30: Inflows surged 500% to $588.22 million, led by BlackRock’s IBIT ($321.5M)
  • Jan 31: Another $318.56 million flowed into ETFs

BlackRock’s IBIT led daily inflows at $363.83 million, followed by:

  • ARK 21Shares’ ARKB: $35.59 million
  • VanEck’s HODL: $5.76 million

However, Bitwise’s BITB and Grayscale’s GBTC saw outflows of $56.03 million and $30.59 million, respectively.

Bitcoin ETFs Expected to Surge in 2025

Matt Hougan, Bitwise’s global head of research, revealed that Bitcoin ETFs had already attracted $35.2 billion in 2024. He predicts inflows could exceed $50 billion by the end of 2025, despite month-to-month volatility.

🔹 Key 2025 Outlook:

  • Several new Bitcoin ETFs could be approved
  • Wells Fargo, UBS, Raymond James, & Stifel may enter the market
  • More institutional investors expected to join

As Bitcoin ETFs gain momentum, the market could expand significantly in the coming months. Will 2025 be the biggest year yet for Bitcoin ETFs?

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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