Bitcoin ETFs Attract $1.75 Billion in Inflows as Market Anticipates New Pro-Crypto Administration

• Bitcoin and Ethereum ETFs have kicked off 2025 with striking inflows, amassing $1.75 billion over just two days, showcasing renewed investor interest.

• This surge follows a less than stellar start to the year, where these funds recorded a $320 million decrease, highlighting a significant turnaround in market sentiment.

• Bitwise Senior Investment Strategist Juan Leon stated, “There’s a lot of excitement about what this administration can get done, in terms of the [pro-crypto] regulatory agenda,” indicating a supportive political environment ahead.

Bitcoin and Ethereum ETFs see $1.75 billion in inflows in two days, following a rough start to the year, hinting at a positive regulatory outlook.

Major Surge in Bitcoin and Ethereum ETF Inflows Highlights Market Resilience

The cryptocurrency market has shown remarkable resilience in early 2025, as Bitcoin and Ethereum exchange-traded funds (ETFs) have bounced back from an initial setback. After starting the year with a disappointing $320 million decline, the combined inflows over two consecutive trading days reached a significant $1.75 billion. This rapid infusion of capital marks a crucial recovery and reflects growing confidence among investors in the crypto sector.

Spot ETF Performance Points to Renewed Investor Interest

Significant inflows into spot Bitcoin ETFs occurred alongside rising cryptocurrency prices, showcasing a clear upward trend in market dynamics. On Monday, these funds attracted a remarkable $978 million, following a previous day of $907 million. Notably, last year saw a staggering $38 billion invested in these products, establishing a solid foundation for further growth in 2025.

Fidelity and BlackRock Trade Places in ETF Dominance

The shift in fund inflows notably highlighted a competitive landscape between major ETF providers. Historically, BlackRock’s iShares Bitcoin Trust (IBIT) dominated with impressive figures, pulling in nearly $37 billion throughout 2024. However, during the opening days of 2025, Fidelity’s Wise Origin Bitcoin Fund (FBTC) has taken the lead. With $763 million in inflows—$370 million alone on Monday—FBTC’s performance indicates a potential shift in investor preferences.

Anticipation of a Pro-Crypto Administration Fuels Investor Confidence

Market analysts believe that the anticipation surrounding President-elect Donald Trump’s forthcoming administration is influencing investor behavior. According to Juan Leon from Bitwise, many investors are positioning themselves in crypto ETFs in expectation of favorable regulatory frameworks and a pro-crypto agenda. This sentiment could catalyze further investments as cabinet appointments reveal a trend towards supporting cryptocurrency integration into traditional finance.

Cryptocurrency Prices Reflecting ETF Trends

As ETFs experienced a flood of new investments, the price of Bitcoin reached above $100,000 for the first time this year, before experiencing a slight correction to just under $97,000. This volatility underscores the interconnection between ETF inflows and cryptocurrency values, as increased capital often drives positive momentum in asset pricing.

Ethereum ETFs Show Modest Recovery amidst Bitcoin’s Gains

While Bitcoin’s resurgence has attracted headlines, Ethereum ETFs have seen a moderate increase, with a total of $110 million in inflows to date in 2025. This contrasts sharply with recent outflows of $77.5 million just last Friday, reflecting the volatile nature of the cryptocurrency market and varying investor confidence across different assets.

Conclusion

The recent uptick in inflows into Bitcoin and Ethereum ETFs suggests a renewed confidence among investors, driven by favorable regulatory expectations and market dynamics. As the cryptocurrency framework develops, the adaptability of ETFs may pave the way for broader acceptance in traditional finance, with investors keenly watching the evolving political landscape for further cues. The coming weeks will be critical in determining whether this momentum can sustain.