The U.S. spot Bitcoin ETF market saw a dramatic turnaround last Friday, recording $908 million in net inflows. This recovery followed a $242 million outflow the previous day, according to Farside Investors data.
Bitcoin ETFs See Renewed Interest
The renewed interest in Bitcoin-backed ETFs coincided with Bitcoin reclaiming the $98,000 level, its highest since December 26.
Fidelity’s Bitcoin Fund (FBTC) took the lead, attracting $357 million, marking one of its strongest single-day performances since its inception.
BlackRock’s iShares Bitcoin Trust (IBIT) followed closely, bringing in $253 million and breaking a three-day streak of net outflows totaling $392 million.
IBIT now holds 548,506 BTC, valued at $53.4 billion, and its total net inflows stand at $37 million.
The ARKB fund, a collaboration between ARK Invest and 21Shares, added $222 million in net inflows, further solidifying its position in the competitive Bitcoin ETF market.
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Other providers, including Bitwise, Grayscale, and VanEck, also reported gains, showcasing the broad-based recovery across the sector.
Bitcoin’s Price Rebound
Bitcoin rose to $98,900 on Friday, up 4% from the previous week, according to data from CoinGecko. The BTC price increase was as result of increased confidence among the investors and institutions due to positive political and market factors.
Nevertheless, Bitcoin price has slightly pulled back and is currently at $97,928.16 having risen by 1.23% within the last 24 hours. It presently has a market capitalization of $1.93t and the trading volume over the last 24 hours was $34.19b, down 13.2%.
Brad Garlinghouse, CEO of Ripple, highlighted the positive sentiment surrounding the U.S.’s new pro-crypto Congress.
“Today, here in the US, we welcomed the 119th Congress—better known as the most pro-crypto Congress in history,” Garlinghouse shared on X. He said,
“The journey is just beginning, but you can’t deny the energy and excitement already building across the industry.”
The institutional interest in Bitcoin remains unrelenting, and analysts are expecting an even more massive expansion of the ETF market. According to Galaxy Research, the present U.S. spot Bitcoin ETFs could attract as much as $250 billion in asset value in 2025.
On the other hand, VanEck’s CEO, Jan van Eck, has encouraged investors to invest more in Bitcoin and gold since they are efficient inflation and fiscal risks hedges.
According to Van Eck, Bitcoin might reach $150,000 – $300,000 due to its role as a financial hedge in a world that is becoming increasingly unpredictable.
Policy Shifts and Market Expansion
The arrival of a pro-crypto Congress has bolstered investor confidence. Analysts expect legislative progress on crypto regulation, which could attract more institutional participation.
Galaxy Research forecasts that five Nasdaq 100 companies and five nations will add Bitcoin to their balance sheets this year.
This combination of political support and robust market performance underscores Bitcoin’s expanding role as a mainstream financial asset.
As regulatory clarity improves, the institutional demand for Bitcoin and its derivatives is expected to surge further.
The ETF market’s rapid rebound and Bitcoin’s price rally signal a strong start to 2025 for the cryptocurrency sector. With $908 million in daily inflows and Bitcoin topping $98,000, the market appears poised for further growth.
While challenges remain, such as regulatory uncertainty and market volatility, the alignment of political support, institutional interest, and market momentum presents a promising outlook.
As the industry anticipates the next moves from Congress and key market players, Bitcoin continues to solidify its position as a vital part of the global financial system.
