Bitcoin (BTC) exchange-traded funds (ETFs) impressed with continuous capital inflows in their first year

Launched in January 2024, Bitcoin ETFs impressed with continuous capital inflows in their first year. However, since February this year, the trend has reversed

Launched in January 2024, Bitcoin ETFs impressed with continuous capital inflows in their first year. However, since February this year, the trend has reversed, and experts are now taking a more differentiated view of Bitcoin ETFs.

In the crypto year 2024, Bitcoin ETFs were rightfully a dominant topic

With combined capital inflows totaling over $35 billion, Bitcoin ETFs significantly exceeded even the boldest forecasts at the turn of the year, and in January 2025, the total grew to its all-time high of over $40 billion. But a trend has now reversed, as data from SoSo illustrates. In February and March, Bitcoin ETFs experienced capital outflows on the vast majority of trading days, thus falling back to the levels seen at the turn of the year. Is the Bitcoin ETF success story already over?

Bloomberg expert Eric Balchunas gives the all-clear via X : Taking into account the special case of Grayscale and BTC price fluctuations, according to Bloomberg calculations, 95 percent of the capital flowing into Bitcoin ETFs has remained loyal to them. Balchunas attributes this to the so-called “Boomers,” who view their investments as long-term private retirement savings.

These “Boomers,” born between 1946 and 1964, are considered the financially strong generation in the US, which has been driving the general ETF boom for years and is also taking the lead in Bitcoin.

But Balchunas also highlights a side effect of the recent negative period for Bitcoin ETFs on X. Over the weekend, gold ETFs in the US overtook Bitcoin ETFs in terms of invested capital for the first time since October 2024, thanks to rising gold prices.

“The empire strikes back,” Balchunas comments whimsically. In a second post, Balchunas reiterates his prediction that Bitcoin ETFs will garner three times as much capital as gold ETFs in the future. “It won’t be an easy path, more like two steps forward and one step back,” Balchunas expects.

Conclusion: Bitcoin ETFs are far from being written off

Other analysts believe that some investors are currently preparing for the approval of additional crypto ETFs by the U.S. Securities and Exchange Commission (SEC) and are therefore reallocating capital. On the other hand, Bitcoin’s market dominance in the crypto markets is continuously increasing, and at a good 60 percent compared to all altcoins combined, demonstrates the special position that BTC enjoys.

It’s hard to imagine that Bitcoin ETFs will prove to be a “one-year wonder” at a time when the US, under Donald Trump, is even establishing a strategic BTC reserve . However, only a few consecutive trading days, in which Bitcoin ETFs could record further capital inflows, are nerves likely to calm down.

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(Featured image by Daniel Dan via Pexels)

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