The US spot Bitcoin ETF market saw a dramatic turnaround last Friday, recording $908 million in net inflows. This recovery followed an outflow of $242 million the previous day, according to data from Farside Investors.
Bitcoin ETFs See renewed interest
The renewed interest in Bitcoin-backed ETFs coincided with Bitcoin’s return to the $98,000 level, the highest since December 26.
Fidelity’s Bitcoin Fund (FBTC) took the lead, pulling in $357 million, marking one of its strongest one-day performances since its inception.
BlackRock’s iShares Bitcoin Trust (IBIT) followed suit, bringing in $253 million and snapping a three-day streak of net outflows totaling $392 million.
IBIT now holds 548,506 BTC, valued at $53.4 billion, and its total net inflow is $37 million.
ARKB Fund, a collaboration between ARK Invest and 21Shares, added $222 million in net inflows, further strengthening its position in the competitive Bitcoin ETF market.
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Other providers, including Bitwise, Grayscale and VanEck, also reported gains, showing a broad recovery across the sector.
Bitcoin price recovery
Bitcoin rose to $98,900 on Friday, up 4% from the previous week, according to data from CoinGeck. The rise in the price of BTC was the result of increased confidence among investors and institutions due to positive political and market factors.
Despite this, the price of Bitcoin has pulled back slightly and is currently at $97,928.16, up 1.23% in the last 24 hours. It currently has a market capitalization of $1.93t and a trading volume of $34.19b in the last 24 hours, a decrease of 13.2%.
Brad Garlinghouse, CEO of Ripple, highlighted the positive sentiment surrounding the new pro-crypto US Congress.
“Today, here in the US, we welcomed the 119th Congress—aka the most pro-crypto Congress in history,” Garlinghouse shared on X. He said,
“The journey is just beginning, but you can’t deny the energy and excitement that is already building throughout the industry.”
Institutional interest in Bitcoin remains unrelenting, and analysts expect an even more massive expansion of the ETF market. Current US spot Bitcoin ETFs could attract as much as $250 billion in asset value in 2025, according to Galaxy Research.
On the other hand, VanEck’s CEO, Jan van Eck, encouraged investors to invest more in Bitcoin and gold as they effectively hedge against inflation and fiscal risks.
According to Van Eck, Bitcoin could reach $150,000 – $300,000 due to its role as a financial hedge in an increasingly unpredictable world.
Policy changes and market expansion
The arrival of the pro-crypto congress boosted investor confidence. Analysts expect legislative progress in crypto regulation, which could attract more institutional participation.
Galaxy Research predicts that five Nasdaq 100 companies and five countries will add Bitcoin to their balance sheets this year.
This combination of political support and strong market performance underscores Bitcoin’s growing role as a major financial asset.
As regulatory clarity improves, institutional demand for Bitcoin and its derivatives is expected to grow further.
The rapid recovery of the ETF market and the rise in Bitcoin prices signal a strong start to 2025 for the cryptocurrency sector. With $908 million in daily inflows and Bitcoin surpassing $98,000, the market seems poised for further growth.
While challenges remain, such as regulatory uncertainty and market volatility, the alignment of political support, institutional interests and market momentum presents a promising prospect.
As the industry awaits the next moves by Congress and key market players, Bitcoin continues to solidify its position as a vital part of the global financial system.
