The market for US spot Bitcoin exchange-traded funds (ETFs) has hit a remarkable milestone, signaling increasing institutional interest in the leading cryptocurrency.
As of January 30, these ETFs collectively hold over $125 billion worth of Bitcoin, representing approximately 6.05% of the total BTC supply, according to data from Dune Analytics.
This achievement comes just a little over a year since these investment vehicles were introduced on January 11, 2024.
Between January 1 and 24, spot Bitcoin ETFs saw inflows totaling $4.2 billion, accounting for more than 6% of all ETF investments during that period. Bloomberg’s senior ETF analyst, Eric Balchunas, highlighted the rapid growth, stating:
“The spot Bitcoin ETFs are quietly surging in early 2025, with $4.2 billion in inflows, making up 6% of all ETF flows. For context, they have now surpassed ESG ETFs in assets ($117 billion) and are nearly on par with gold spot ETFs.
The influx of ETF investments has played a pivotal role in Bitcoin’s price rally this year, contributing around 75% of new investments when BTC reclaimed the $50,000 threshold on February 15, just weeks after the ETFs launched.
BlackRock’s IBIT Among the World’s Largest ETFs
BlackRock, the world’s leading asset manager, dominates the Bitcoin ETF market, managing over $58 billion in assets under its IBIT fund. This accounts for a commanding 46.4% share of the US Bitcoin ETF market.
With this rapid growth, BlackRock’s IBIT has now secured its place as the 31st-largest ETF globally, spanning both cryptocurrency and traditional financial products, according to VettaFi data.
On January 30 alone, BlackRock’s Bitcoin ETF acquired over $321 million worth of BTC, representing 54% of that day’s total net inflows of $588 million, as per data from Farside Investors.
While some analysts predict potential short-term corrections, possibly dipping to $96,000, the long-term outlook for Bitcoin remains highly optimistic.
According to Ryan Lee, chief analyst at Bitget Research, Bitcoin’s ETF-driven momentum could push its value toward $200,000 before the end of 2025. In a statement, he noted:
“Long-term trends indicate continued growth, with projections suggesting Bitcoin could reach $200,000 by 2025.”
However, Bitcoin’s price remains sensitive to broader economic conditions, and delays in potential interest rate cuts by the US Federal Reserve could create downward pressure in the short term.
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