Bitcoin ETFs Surge with $1B Daily Inflows; Price Predicted at $200K by 2025
bitcoin ETFs Experience Unprecedented Billion-Dollar Inflows Amid Price Surge
Record Inflows Signal Institutional Interest
Last week marked a historic moment for U.S. spot bitcoin ETFs, as they recorded consecutive inflows exceeding a billion dollars for the first time. This surge in institutional interest coincided with bitcoin‘s remarkable price rally, which has set the stage for a potential peak of $200,000 by 2025.
On Thursday, the 11 U.S.-listed spot bitcoin ETFs attracted a staggering $1.17 billion in net inflows, followed by an additional $1.03 billion on Friday, as reported by Farside Investors. This two-day total of $2.2 billion represents the largest inflow sequence since the inception of these ETFs in January 2024.
The Driving Force Behind the ETF Surge
What’s fueling this remarkable trend? bitcoin‘s price skyrocketed past previous highs, reaching $112,000 on Wednesday and peaking at $118,780 by Friday, according to data from Brave New Coin. This explosive growth contributed to a total of $2.72 billion flowing into bitcoin ETFs over just five trading days.
Matt Hougan, Chief Investment Officer at Bitwise Invest, noted, “On Thursday, the bitcoin network mined approximately 450 BTC, while the ETFs acquired around 10,000 BTC.” This stark contrast illustrates a classic case of supply and demand imbalance.
Hougan remains firm in his prediction for bitcoin‘s price, asserting that the target of $200,000 by 2025 may even be conservative given the soaring ETF demand.
Unsustainable Demand or New Normal?
On a single day, ETF purchases outstripped newly mined bitcoin by an astonishing 22-to-1 ratio, as highlighted by bitcoin infrastructure firm Jan3. CEO Samson Mow cautioned that such demand levels may not be sustainable at current price points.
Despite concerns about sustainability, the influx of capital has propelled BlackRock’s iShares bitcoin Trust (IBIT) into the record books, as it surpassed $80 billion in assets under management on Thursday. This milestone makes it the fastest ETF ever to reach this level, achieving it in just 374 days, according to Bloomberg ETF analyst Eric Balchunas.
A Shift in the Financial Landscape
BlackRock’s IBIT has proven to be more profitable for the asset manager than its flagship iShares Core S&P 500 ETF (IVV), generating higher annual revenues amid the crypto boom.
Total assets across all U.S. spot bitcoin ETFs have now exceeded $140 billion for the first time. While price increases have certainly played a role, the substantial inflows signal a clear message: traditional finance is eager to embrace bitcoin, and the appetite is immediate.
The latest price rally and ETF activity indicate that bitcoin is no longer merely a niche asset for risk-seeking crypto enthusiasts. With Wall Street investing billions through regulated channels, bitcoin has officially entered the mainstream financial arena.
As bitcoin enters a phase of price discovery, those who have yet to invest may find themselves missing out on what could be a significant rally in 2025. Should bitcoin reach the anticipated $200,000 mark this year, there remains considerable upside potential for both bitcoin and the broader cryptocurrency market.
