Bitcoin exchange-traded funds (ETFs) experienced a sharp rebound on Friday, pulling in $908.1 million, marking their strongest daily inflows since late November, according to data from U.K.-based asset manager Farside Investors.
This influx reversed weeks of persistent outflows, including a $242.3 million withdrawal on Thursday, and brought the three-day net total to a positive $665.8 million.
Bitcoin’s Recovery Boosts ETFs
Bitcoin’s recent rally is fueling optimism among investors. The cryptocurrency is currently trading around $102,000, up 11% over the past week, though still below its all-time high of $108,268 reached in mid-December, according to CoinMarketCap data.
The renewed interest is driven by hopes that a crypto-friendly Trump administration will ease regulations around digital currencies. Additionally, Bitcoin’s appeal as an inflation hedge has strengthened, with the Federal Reserve forecasting 3% inflation for 2025, above its 2% target.
Spot Bitcoin ETFs: A Growing Market
Currently, the 11 spot bitcoin ETFs collectively hold 1.1 million bitcoins, representing approximately 5.5% of the cryptocurrency’s circulating supply, according to data from etf.com.
The rebound was led by inflows into the Fidelity Wise Origin Bitcoin Fund (FBTC), which drew $357 million on Friday, according to Farside data. Other notable funds also saw significant recoveries:
- BlackRock’s iShares Bitcoin Trust (IBIT): $253.1 million
- ARK 21Shares Bitcoin ETF (ARKB): $222.6 million
- Bitwise Bitcoin ETF (BITB): $61.1 million
These inflows pushed FBTC’s year-to-date total to $393.2 million, positioning it as an early leader for 2025. The fund now holds 205,510 bitcoins, based on its latest holdings report.
BlackRock’s Dominance
Despite starting 2025 with the largest single-day outflow of $332.6 million, BlackRock’s IBIT remains the largest player in the market. The fund holds 551,076 bitcoins, making it the third-largest known bitcoin holder globally.
Since the launch of spot bitcoin ETFs, the sector has grown rapidly, amassing $35.9 billion in total assets.
The rebound in Bitcoin ETFs highlights investor confidence in the cryptocurrency’s long-term prospects, driven by regulatory optimism and its role as a hedge against inflation. With Bitcoin’s price rallying and institutional adoption growing, these ETFs are poised to remain a pivotal force in the digital asset ecosystem throughout 2025.
