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Bitwise’s Chief Investment Officer Matt Hougan reported that US spot Bitcoin exchange-traded funds (ETFs) experienced nearly $5 billion in inflows during January, setting a pace that could exceed $50 billion for the year. This marks a significant increase from the $35.2 billion recorded in all of 2024.
Hougan noted the potential for "significant month-to-month volatility in flows" but maintained a positive outlook, suggesting that the inflows for Bitcoin ETFs could "end the year north of $50 billion." This follows a prediction made in December by Hougan and Bitwise’s head of research, Ryan Rasmussen, who forecasted that inflows into Bitcoin ETFs in 2025 would surpass those seen in 2024.
The largest net inflows in January were seen by BlackRock’s iShares Bitcoin Trust ETF (IBIT), which attracted $3.2 billion, and Fidelity’s Wise (LON:WISEa) Origin Bitcoin Fund (FBTC), which brought in nearly $1.3 billion. Bitwise’s own Bitcoin ETF (BITB) ranked fifth among the 11 ETFs, with over $125 million in net inflows for January.
Hougan and Rasmussen’s report also suggested that 2025 could witness even greater inflows into Bitcoin ETFs as institutional investors increase allocations to these funds. They compared the expected growth to the trajectory of gold ETFs, which saw their inflows more than double from $2.6 billion in their first year in 2004 to $5.5 billion in 2005.
Furthermore, the Bitwise executives anticipate that the world’s largest wirehouses, which have so far restricted their wealth managers’ access to Bitcoin ETFs, will change their policies this year. Such a move could expose Bitcoin ETFs to a much larger pool of investment, potentially reaching trillions of dollars.
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