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Bitcoin ETF catch up with spot gold funds, bring in 6% of ETF inflows in 2025

In this post:

  • Bitcoin ETF had another streak of six days of positive inflows, with $4.2B in the year to date.
  • ETF holdings may surpass 7% of the supply of all BTC by the end of the year if the pace of buying remains the same.
  • Demand for BTC funds reflects the shift to US-based crypto investments.

Bitcoin ETF inflows have reached $4.2B in the year so far, gaining influence among other funds. After the most recent inflows, Bitcoin ETF hold 6% of the total value of funds and are on par with spot gold investments. 

Bitcoin ETFs are becoming a more common choice among investors, accounting for up to 6% of all ETF inflows for the new year. In the year to date, Bitcoin ETFs have drawn in $4.2B, reaching total assets under management of $121B. 

If the accumulation of BTC continues at this pace on an annualized basis, the funds will hold  7.1% of the BTC supply by the end of the year.

With the predicted expansion, ETF holdings may surpass the accumulation of BTC by retail investors, who prefer to control BTC in their own wallets. In early 2025, both ETF and small retailers held a similar percentage of the supply of BTC, taking more coins out of the market and causing a potential supply crunch.

The accelerated pace of inflows follows a series of six consecutive days in the green, as BTC kept receiving positive news from US lawmakers. 

In the past quarter, inflows to BTC ETF surpassed the early 2024 bull market, setting up the pace for the next year’s activity. The performance and signals from ETF are closely watched for signs of an ongoing bull market, where BTC is yet to reach new all-time highs. 

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The launch of a Bitcoin ETF also invited comparison to the launch of gold-based ETF vehicles. Over the years, the presence of spot ETF was a key factor for the price of gold, expecting a similar effect for BTC.

Bitcoin ETF catches up with traditional investments

The Bitcoin ETF has matched spot gold funds, while surpassing Environmental, Social and Governance (ESG) ETF with $117B in assets under management. For the month of January, ETF had five days of net outflows, quickly returning to new inflows. 

BlackRock’s iShares Bitcoin Trust (IBIT) now carries more than $61B in assets under management, surpassing the value of iShares S&P500 Growth ETF. BlackRock, Fidelity, and Grayscale built ETF now included among the top 100 funds by market capitalization. 

Due to its legacy status, Grayscale also climbed among the top 5 ETF with the biggest 5-year returns. Grayscale achieved returns of 53.99%, comparatively lower than spot BTC, while the Grayscale Ethereum Trust reached 5-year gains of 45.06%.

The acceleration of Bitcoin ETF tracks the growth of ETF inflows as a whole. Over more than a decade, the industry expanded its assets under management to over $15 trillion. Crypto-derived ETF are a relatively new arrival, but they manage to tap the interests of millennial investors, who prefer growth assets to bonds.

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Crypto ETF point to US-based demand

The recent growth of ETF reflects the trend of growing demand from the USA, on expectations of more lenient regulations. While there are smaller EU-based and Asian funds, the presence of BlackRock and Grayscale shifts the demand to US-based traders. 

Spot BTC funds are available in 10 countries, but US-based has taken over 83% of the market even in the early days of trading. Over the whole of 2024, assets under management increased by 950%, reaching $134B for both BTC and other crypto ETF. 

The gap between the USA, Canada, and other countries remained, reflecting both the accessibility of the funds and confidence in an ongoing bull market. 

Various products are also available in Canada, Germany, Brazil, Australia, Switzerland, and Hong Kong, though some are restricted to accredited or institutional investors.

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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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