Bitcoin ETF Inflows Decline Amid Market Uncertainty
Inflows into spot Bitcoin exchange-traded funds in the United States have seen a sharp decrease over the past week, reflecting market volatility and investor caution amidst global economic concerns.
Recent data from SoSoValue shows that the 12 spot Bitcoin ETFs experienced a significant drop in net inflows, attracting only $559.84 million from investors, a substantial 68% decrease from the previous week’s $1.76 billion.
The week began with $457.48 million in outflows as investors reacted to the launch of China’s AI platform, DeepSeek, which sparked a sell-off in major stock prices and resulted in nearly $1 billion in liquidations across the crypto market.
Despite some modest inflows over the following days, the market remained subdued as investors awaited the Federal Reserve’s decision on interest rates. The Fed ultimately opted to keep rates unchanged, leading to a surge in inflows the next day as BTC ETFs attracted $588.22 million, with BlackRock’s IBIT leading the pack.
Looking ahead, experts predict a bullish outlook for Bitcoin ETFs in 2025. Matt Hougan of Bitwise Assets Management anticipates inflows to surpass the $35.2 billion seen in 2024, with the market expected to expand further with the potential approval of new BTC ETFs from issuers like Wells Fargo, Stifel, Raymond James, and UBS.
While volatility may persist in the short term, the long-term prospects for Bitcoin ETFs remain positive, with the potential for significant growth in the coming year.