Bitcoin (BTC) and Ethereum (ETH) Spot ETFs See $1.2B Surge In Inflows, Signaling Rise In Institutional Allocations

Bitcoin ETFs alone saw $987 million in net inflows, with Fidelity's FBTC leading at $370 million and BlackRock's IBIT securing $209 million.

Bitcoin and Ethereum spot exchange-traded funds (ETFs) experienced a collective surge in inflows on Friday, amassing nearly $1.2 billion, as reported by ETF data provider SoSo Value.

Bitcoin ETFs specifically witnessed $987 million in net inflows, with Fidelity’s FBTC ETF leading the pack at $370 million, followed by BlackRock’s IBIT ETF, which secured $209 million in inflows.

Meanwhile, Ethereum ETFs experienced a net inflow of $129 million. The total net asset value of the Ethereum spot ETF market now stands at $13.466 billion, with BlackRock’s ETHA ETF alone receiving $124 million in inflows.

This surge in ETF activity coincides with Bitcoin’s spot price premium on Coinbase, which analysts at QCP Capital suggest may indicate an increase in institutional allocations toward Bitcoin, especially considering the impending expiration of Bitcoin miners’ selling pressure in 2025.

Moreover, positive regulatory narratives, such as the potential for a pro-crypto Prime Minister in Canada, as predicted by Polymarket, are also contributing to the favorable market sentiment.

However, QCP Capital also cautions against potential market volatility due to the reinstatement of the U.S. Treasury debt ceiling in mid-January. This may create uncertainty and put pressure on markets as the government can only use extraordinary measures to fund federal expenditures.

Despite these positive trends, the surge in ETF inflows is occurring amidst an undercurrent of fiscal and political uncertainty, which may ultimately lead to volatility as the situation develops throughout the month.