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?