US Bitcoin ETF Inflows Hit $900M As Fidelity Leads BlackRock, BTC Bottom In?

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As a seasoned crypto investor with over a decade of experience in this dynamic market, I find myself intrigued by the recent surge in US spot Bitcoin ETF inflows. Having weathered numerous market cycles and witnessed the rise and fall of countless cryptocurrencies, I can confidently say that these inflows are a positive sign for the future of Bitcoin.

The resilience displayed by Fidelity’s FBTC ETF, attracting $357 million in a single day, is particularly noteworthy. It’s reminiscent of the early days of Bitcoin itself, when a few brave pioneers dared to invest in this unproven technology and reap the rewards as it soared.

The on-chain metrics also support this bullish outlook, with massive withdrawals from exchanges and a resurgence in demand among U.S.-based institutional investors. It’s like watching the early settlers moving westward, staking their claims, and building a new future.

However, as Robert Frost once wrote, “The woods are lovely, dark and deep, But I have promises to keep, And miles to go before I sleep.” The road ahead is still long, and there may be challenges along the way, such as Donald Trump’s inauguration day which seems to have both traders and investors on edge. But as a wise man once said, “Buy the rumor, sell the news.”

In the end, let me leave you with a little joke: Why did Bitcoin cross the road? To get to the other hash function!

Following a rocky beginning to 2025 for US spot Bitcoin ETFs, inflows have rebounded robustly, reaching an impressive $900 million on Friday. Notably, Fidelity’s FBTC exchange-traded fund (ETF) has taken the lead, acquiring 3,640 BTC the previous day. Additionally, the Bitcoin price is inching closer to the $100K mark again, with on-chain signals suggesting a potential formation of a bottom.

Additionally, the data from the liquidation process indicates that traders and investors hold a diverse perspective regarding Donald Trump’s inauguration day, with an equal number of long and short positions being liquidated. This ambiguity is similarly apparent in the daily flow of Bitcoin ETF investments.

Bitcoin ETF Inflows Resume Again In Strong Reversal

Following substantial withdrawals earlier this week, US Bitcoin ETFs experienced a significant turnaround on Friday, attracting approximately $900 million. According to Farside Investors’ data, Fidelity’s FBTC recorded the highest inflows among its counterparts yesterday, amounting to $357 million. After three consecutive days of withdrawals, Fidelity’s IBIT and BlackRock’s IBIT also saw a reversal with $252 million and $222 million in inflows respectively, while Ark Invest’s ARKB followed suit.

As an analyst, I’m thrilled to report a significant turnaround observed yesterday, following a previous outflow from the iShares Bitcoin Trust (IBIT). Remarkably, today, IBIT saw over $250 million in fresh inflows, marking a strong rebound. This year, BlackRock’s IBIT has achieved impressive milestones, with approximately $37 million in inflows and a net asset management of around $53 million.

Regarding total ETF investments, Geraci noted: “Indeed, close to a billion dollars – around $900 million, to be exact – was invested just today.” He also mentioned that Bitcoin Spot ETFs have garnered roughly $700 million in net inflows since the start of this year.

BTC On-Chain Metrics Show Strength

Data on Bitcoin’s blockchain suggests that it is holding strong, indicating bullish sentiment among investors despite the recent market correction. As reported by crypto analyst Ali Martinez, a large amount of Bitcoin – approximately 48,000 units worth over $4.5 billion – has been withdrawn from exchanges in the past week.

A significant withdrawal suggests a possible change in market opinion, as investors choose to hold assets themselves or plan for long-term investment. Typically, such large withdrawals occur right before a substantial upward trend.

The Coinbase Premium Index, an important measure of institutional investment in Bitcoin, just hit a two-year low at -0.23%. But it’s bouncing back quickly, indicating a surge in American institutional investors’ interest in Bitcoin. This trend is also backed by increasing investments into U.S. Bitcoin ETFs.

The Bitcoin community is anxiously counting down to Donald Trump’s inauguration on January 20th, as traders anticipate potential market fluctuations before BTC continues its trajectory towards $100K and beyond. Robert Kiyosaki, author of “Rich Dad Poor Dad,” forecasts the price could reach $175K and even $350K this year.

Currently, Bitcoin’s price stands approximately 1.25% higher, hovering around $98,000. The trading volume has seen a decrease of about 13%. According to data from Coinglass, the total liquidation within the last 24 hours has skyrocketed to $53 million, with over $33 million being from short positions.

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2025-01-04 09:30