Bitcoin ETFs See $1.1 Billion Inflows as BTC Breaks $100K for the First Time Since November

U.S. spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) recorded a combined $1.1 billion (₩1.45 trillion) in net inflows on Monday, January 7. The surge in institutional investments pushed Bitcoin's price above $100,000 for the first time since November 19.

Bitcoin ETFs led the charge, attracting a total of $978.6 million. Fidelity's FBTC fund topped the list with inflows of $370.2 million, followed by BlackRock's IBIT at $209.1 million and Ark Invest's ARKB with $152.9 million. Other funds, including Grayscale's GBTC, Bitwise's BITB, VanEck's HODL, and Franklin Templeton's EZBC, also contributed to the inflow momentum.

This marks the second consecutive trading day where Bitcoin ETFs garnered over $900 million in net inflows, signaling a reversal of the trend from the previous two weeks, which saw approximately $2 billion in net outflows. The inflows follow BlackRock's historic $332.6 million outflow on January 2, indicating renewed market confidence.

Bloomberg ETF analyst Eric Balchunas highlighted the significance of this trend, stating, "Despite Bitcoin's price drop below $100,000, ETFs attracted nearly $1 billion in inflows on Friday. This is a strong indicator of renewed market trust, especially with inflows spread across multiple funds."

Since their inception, Bitcoin ETFs have accumulated $37.1 billion (₩48 trillion) in net inflows.

Ethereum spot ETFs, though more subdued, also reported $12.87 million in net inflows on Monday. BlackRock's ETHA fund led with $12.41 million, while Fidelity's FETH added $460,000. Other funds reported no significant activity. Since their launch in July last year, Ethereum ETFs have achieved total inflows of $2.8 billion (₩3.66 trillion).

Valentin Fournier, senior analyst at BRN, commented, "The $1.1 billion ETF inflow reflects growing institutional confidence, which has driven Bitcoin's price to $102,750 before settling at $101,436." Fournier also noted that MicroStrategy's recent $100 million Bitcoin purchase bolstered market sentiment, though at a more tempered pace compared to prior acquisitions.

Despite the strong inflows, Ethereum has struggled to break past the $4,000 mark, remaining stagnant even as its ETFs gain traction.

The sustained inflows into Bitcoin ETFs and increasing institutional participation suggest continued bullish momentum in the cryptocurrency market. Experts are closely watching whether Bitcoin's strength will extend to Ethereum and other altcoins.

The resurgence of institutional investor trust and the rising inflows into ETFs could enhance market stability, drawing attention to the future trajectory of the cryptocurrency market.