Spot Bitcoin ETFs Near $40 Billion Milestone as Inflows Surge

U.S.-based spot Bitcoin ETFs are on the brink of surpassing a major milestone, with cumulative net inflows reaching $39.94 billion since their launch just over a year ago. This unprecedented figure highlights a growing wave of enthusiasm for Bitcoin, further fueled by the cryptocurrency maintaining its position above the $100,000 mark for an extended period.

Bitcoin ETFs Inflows Reach New Heights

According to SoSoValue data, the total net assets held by Bitcoin ETFs reached $123.1 billion as of the close of last week’s trading, marking the second-highest total to date. The surge in inflows coincides with President Donald Trump’s second-term inauguration, which has brought renewed optimism among pro-crypto advocates.

The past trading week, shortened due to Martin Luther King Jr. Day, saw $1.76 billion in inflows, extending the streak to seven consecutive trading days. BlackRock’s iShares Bitcoin Trust ETF led the charge, capturing $1.32 billion of the week’s inflows, maintaining its position as the market leader.

BlackRock’s Rule Change

BlackRock’s dominance in the Bitcoin ETF market remains unmatched. The fund recently filed a rule change with Nasdaq to allow for in-kind redemptions and creations, which would enable investors to receive Bitcoin directly rather than cash. This shift, if approved, could attract even more institutional investors looking for greater flexibility in managing their holdings.

Fidelity’s FBTC fund followed with $202.2 million in inflows last week, while the ARKB fund from Ark Invest and 21Shares secured $172.6 million, rounding out the top three contributors. The recent inflow streak has reversed an earlier outflow trend observed this month, suggesting growing investor confidence as Bitcoin ETFs become increasingly integrated into mainstream portfolios.

Pro-Crypto Sentiments Drive Market Optimism

The resurgence of interest in Bitcoin ETFs coincides with Trump’s return to the Oval Office. The president has voiced favorable opinions on cryptocurrency, and his ally Elon Musk, head of the Department of Government Efficiency, is reportedly exploring blockchain adoption to reduce federal costs. These developments have reignited investor enthusiasm for Bitcoin and blockchain technology as a whole.

As spot Bitcoin ETFs edge closer to the $40 billion inflow mark, they continue to play a pivotal role in legitimizing the cryptocurrency market. The combination of regulatory advancements and institutional demand may signal a new chapter for Bitcoin’s adoption and long-term prospects.