US Spot Bitcoin ETFs Attract $5 Billion in January, Could Exceed $50 Billion in 2024: Bitwise Chief Investment Officer

In January, US spot Bitcoin exchange-traded funds (ETFs) experienced inflows nearing $5 billion, marking a strong start that could propel them towards $50 billion or more by the end of the year, according to Bitwise CIO Matt Hougan.

In a recent post on X, Hougan highlighted that spot Bitcoin ETFs garnered $4.94 billion in January alone, translating to an annualized rate of approximately $59 billion.

He compared this figure to the total inflows of $35.2 billion throughout 2024, underscoring the growing interest from investors in Bitcoin-backed financial products.

Bitcoin ETFs Expected to Surpass $50 Billion by End of 2024

Despite acknowledging monthly variations, Hougan remains optimistic that Bitcoin ETFs will exceed $50 billion in inflows by the conclusion of 2024.

Among the key players, BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the sector, attracting $3.2 billion in net inflows for January.

Following closely was Fidelity’s Wise Origin Bitcoin Fund (FBTC), which saw nearly $1.3 billion in net inflows, according to data from Farside Investors.

Other ETFs experienced varying levels of inflows, with Grayscale’s Bitcoin Mini Trust ETF (BTC) receiving $398.5 million, and Bitwise’s Bitcoin ETF (BITB) accumulating over $125 million.

Bitwise executives Hougan and Ryan Rasmussen had previously forecasted that 2025 would surpass 2024 in ETF inflows, pointing to a trend towards institutional adoption.

They noted that the inaugural year of an ETF is typically its slowest, drawing parallels to gold ETFs, which recorded $2.6 billion in inflows during their first year (2004) before increasing to $5.5 billion in 2005.

It’s worth mentioning that there is significant monthly volatility in flows. Nevertheless, I believe we will finish the year above $50b.
Jan 2024: $1.5b
Feb 2024: $6.0b
Mar 2024: $4.6b
Apr 2024: (-$0.3b)
May 2024: $2.1b
Jun 2024: $0.7b
Jul 2024: $3.2b
Aug 2024: (-$0.1b)
Sep 2024: $1.3b
Oct.…

— Matt Hougan (@Matt_Hougan) February 1, 2025

The report also noted that major financial advisory firms (wirehouses) have yet to fully engage with Bitcoin ETFs, a potential shift that could unlock trillions of dollars in investment opportunities.

With the demand for Bitcoin ETFs increasing and institutional interest gaining traction, 2024 is poised to be a transformative year for Bitcoin investment vehicles.

Gary Gensler’s Departure Triggers Surge in Crypto ETF Filings

Last week, asset management firm 21Shares officially submitted a filing with the U.S. Securities and Exchange Commission (SEC) to launch a spot Polkadot ETF.

This filing comes at a crucial moment for the SEC and cryptocurrency ETFs, following the resignation of SEC Chair Gary Gensler on January 20.

Gensler, known for his cautious approach to crypto regulations, stepped down amid increasing pressure for enhanced regulatory clarity in the digital asset sector.

Recently, Tuttle Capital Management submitted applications for ten cryptocurrency-based leveraged ETFs, including funds linked to popular meme coins.

Analysts suggest that these filings are part of a broader strategy to test the limits of an SEC under crypto-friendly regulators from the Trump era.

The proposed ETFs include leveraged funds aiming to deliver double the returns of their underlying assets, such as the meme coins Official Trump (TRUMP) and Melania Meme (MELANIA).

Additionally, Osprey Funds and REX Shares have filed for meme coin ETFs covering Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK) on January 21.

Meanwhile, the SEC has also granted preliminary approval for Bitwise Asset Management’s Bitcoin and Ethereum ETF, which would track both BTC and ETH within a single fund.

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