Updated Bitcoin exchange-traded funds (ETFs) have recorded their strongest net inflows in months, as institutional investors increase exposure to the digital asset, which is up more than 6% since the start of the year.
Crypto ETFs Reach Highest Daily Flows in Months Amid Market Rebound
ETF inflows surge
Spot Bitcoin ETFs posted net inflows of $697mn on Monday, marking their best single day since early October, before the broader crypto market downturn, according to Farside Investors. BlackRock’s IBIT and Fidelity’s FBTC led the charge, attracting $373mn and $191mn respectively.
Momentum had already been building late last week. On Friday, Bitcoin ETFs saw $471mn in net inflows, the highest level in weeks. IBIT ranked as the tenth-largest ETF by net inflows across the entire market that day, according to Bloomberg data shared by a Bloomberg ETF analyst on X.
Ether-focused funds also drew substantial interest. Ether (ETH) ETFs recorded $168mn in net inflows on Monday, led by BlackRock’s ETHA, which captured $103mn. Flows had been even more impressive on Friday, reaching $175mn – the highest since early December – driven by Grayscale’s Ethereum Staking ETF “ETHE” ($54mn), its Staking Mini ETF “ETH” ($50mn), and BlackRock’s ETHA ($47mn).
Institutional interest returns
The renewed demand for Bitcoin ETFs points to growing institutional engagement, which tends to have a more sustained impact on crypto markets than retail participation.
“Bitcoin ETF inflows are back,” wrote the marketing director of Tonso AI who posts under the pseudonym “Wals”, on X over the weekend. “Now they are loading up, this is just the beginning.”
“January tends to bring fresh money and fresh positions, explained DeFi researcher Tanaka on X on Monday. “People call it the January Effect, and in crypto it’s way stronger than TradFi.”
Bitcoin has climbed as much as 8.2% year-to-date, while several altcoins and memecoins, including XRP and Dogecoin, have surged more than 25% as investors rotate into risk assets. By contrast, equity markets have remained relatively quiet over the same period.