Demand for US Bitcoin ETFs has increased significantly as we enter 2025, marking a noticeable reversal after a tender start to the year.

Based on Glassnode’s latest data, net inflows for the week ending January 6 were 17,567 BTC, equivalent to approximately $1.7 billion.

This boost exceeds the average weekly inflow of 15,900 BTC documented in the last quarter of 2024 and indicates a return to investor enthusiasm.

A turbulent journey of inflows

Inflows into Bitcoin ETFs have shown an erratic pattern. These inflows showed significant fluctuations at the end of 2024. In September, there was a significant decline, among others Bitcoin prices dropped below $64,000, leading to immense payouts.

However, from October everything started to change. Inflows increased dramatically; within a few weeks they reached the level of 24,000 BTC. With an average weekly inflow of around 15,900 BTC, the boost continued in November and December, demonstrating the high demand for Bitcoin investments.

After a leisurely start to the year, demand for American spots #Bitcoin The situation in the case of ETFs has normalized. For the week of January 6, inflows were 17,567 #BTC ($1.7 billion), which is slightly more than the weekly average of $15.9 thousand $BTC ($1.35 billion) from October to December 2024: https://t.co/0Cpfm8lpak pic.twitter.com/u4FksOSLuZ

— glassnode (@glassnode) January 13, 2025

As the price of Bitcoin increased, the inflow of ETFs also increased. In December 2024, the world’s most popular digital asset reached a record high of $108,135.

This association suggests that as more people switched to exchange-traded funds, investor confidence in Bitcoin’s value increased, leading to positive market sentiment.

Bitcoin ETF: Who Owns the Most?

Total shares in US spots Bitcoin ETFs at the beginning of January 2025 it was approximately 1.13 million BTC. Grayscale has 204,300 BTC, Fidelity has 205,488 BTC, and BlackRock has 559,673 BTC, making it the largest holding.

In 2024 BlackRock’s Bitcoin ETF (IBIT) attracted attention by accumulating $37.25 billion in assets in its first year, securing the third position on the list of top 20 ETFs this year. This significant growth highlights the growing institutional demand for cryptocurrency-based financial solutions.

Will 2025 be a good year for ETFs?

Bitcoin ETFs look set to do well in 2025. Experts in this field believe that many up-to-date, groundbreaking offers may appear on the market this year.

According to Nate Geraci of the ETF Store, there will be at least 50 up-to-date bitcoin ETFs this year. These will cover a wide range of strategies, such as covered call ETFs and Bitcoin-denominated stock ETFs.

Moreover, there is speculation that Bitcoin spot ETFs may soon exceed physical value gold ETFs in the size of assets. This would represent a key advance in the development of digital assets as conventional investment vehicles.

Such a shift would underscore growing confidence in Bitcoin as an essential store of value and investment vehicle, thus challenging the long-held view that gold is the ultimate security.

As financial institutions such as Vanguard explore alternatives to cryptocurrency ETFs, it underscores a broader trend of acceptance and incorporation of cryptocurrencies into established financial systems.

Featured image from Reuters, chart from TradingView