Institutional Surge: Bitcoin ETFs Absorb $2.3 Billion in a Single Week

January 21, 2025 05:06 PM AEDT | By Team Kalkine Media

Institutional Surge: Bitcoin ETFs Absorb $2.3 Billion in a Single Week — Image source: Shutterstock

A Week of Record Flows

The week began with outflows of $494 million but saw a swift recovery as U.S. Bitcoin ETFs netted $2.3 billion in just three days. Wednesday brought a net inflow of $755.1 million, followed by a slight dip on Thursday with $626.1 million, before surging again on Friday with $975.1 million, marking a significant rebound.

Cumulatively, the funds ended the week with a net gain of $1.86 billion. Collectively, these ETFs now hold over 1.14 million Bitcoin, representing approximately 5.445% of the cryptocurrency’s capped supply of 21 million.

BlackRock Leads the Way

The largest player, BlackRock’s iShares Bitcoin Trust (IBIT), accounted for nearly half of these holdings with 559,564 Bitcoin, equating to 2.665% of the total Bitcoin supply. BlackRock (NYSE:BLK) attracted $745.7 million in new inflows during the week, highlighting its dominant role in institutional Bitcoin exposure.

Fidelity’s Fidelity Bitcoin ETF (FBTC) followed closely with $680.2 million in inflows, reflecting its appeal among investors seeking diversified crypto offerings.

Institutional Interest Expands

Growing acceptance of Bitcoin among institutions and regulatory openness are driving these investments. Several U.S. states, including Wyoming, Texas, North Dakota, and New Hampshire, are exploring crypto investments, while global entities also show interest. Italy’s largest bank, Intesa Sanpaolo (BIT:ISP), recently ventured into Bitcoin investments after long-standing resistance, further illustrating this global shift.

Early Adoption Stage

BlackRock's head of digital assets, Robert Mitchnick, characterized the current phase as the beginning of mainstream Bitcoin adoption. He remarked that despite substantial growth in 2024, the institutional and wealth advisory segments still have significant room for expansion.

However, not everyone agrees. Jamie Dimon, CEO of JPMorgan Chase (NYSE:JPM), remains skeptical, labeling Bitcoin a "pet rock." While he acknowledges the utility of blockchain technology, his stance underscores the contrasting views within the financial sector.

The substantial inflows into Bitcoin ETFs underscore an accelerating institutional pivot toward cryptocurrencies. With increasing adoption by governments and financial institutions, Bitcoin ETFs are playing a critical role in shaping the future of the digital asset space.

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