Bitcoin ETF inflows have resumed this week, reaching $2.73 billion, with analysts predicting BTC could hit $200k by 2025

This week, Bitcoin exchange-traded funds (ETFs) experienced significant inflows, totaling $2.73 billion. This surge was driven by optimism regarding a potentially crypto-friendly regulatory environment and Bitcoin’s achievement of surpassing the $100,000 mark. Specifically, on December 5, Bitcoin ETFs saw an inflow of $766 million, accompanied by a 50% increase in daily trading volume, as Bitcoin reached an all-time high of $103,679. This milestone was widely celebrated within the crypto community.

However, on December 6, inflows dropped to $376.59 million as Bitcoin fell below $97,000, leading to over $500 million in liquidations within a single day. Despite the late-week dip in inflows, U.S. Bitcoin ETFs have now accumulated more than 1.1 million BTC, surpassing the 1.1 million BTC held by Bitcoin’s creator, Satoshi Nakamoto. This reflects the growing appeal of these investment vehicles to institutional investors.

Among the top-performing ETFs, BlackRock’s IBIT continued to lead with $257.03 million in inflows on December 6, marking its sixth consecutive day of dominance. Fidelity’s FBTC followed with $120.17 million, and ARK and 21Shares’ ARKB attracted $24.9 million. In contrast, Grayscale Bitcoin Trust (GBTC) saw outflows of $32.3 million, extending its losing streak to four days in the week.

Experts predict that the trend of growing institutional interest in Bitcoin through ETFs will continue, potentially accelerating the global adoption of digital assets. Hex Trust CEO Alessio Quaglini suggests that this trend could lead to competition among nations to acquire Bitcoin. Similarly, Petr Kozyakov, co-founder and CEO of Mercuryo, believes that digital assets are transitioning from speculative investments to transformative technologies with global potential.

Looking further ahead, analysts are highly optimistic about Bitcoin’s future. Geoff Kendrick, global head of digital assets research at Standard Chartered, predicts that Bitcoin could reach $200,000 by the end of 2025, especially if U.S. retirement funds, global sovereign wealth funds (SWFs), or even a U.S. strategic reserve fund begin adopting Bitcoin more rapidly. Similar forecasts are also being made by analysts at Bitwise, who point to rising institutional demand and diminishing Bitcoin supply as key drivers of Bitcoin’s price increase.

However, despite the bullish outlook, several experts are cautious about the potential for market corrections. Mike Novogratz, CEO of digital bank Galaxy Digital, has warned that market volatility could increase as many market participants are highly leveraged. Chris Burniske, a partner at Placeholder, echoed similar concerns, urging investors to manage their expectations. He referenced the 2021 bull market as a cautionary tale, noting that despite predictions of Bitcoin reaching $100,000, it peaked at only $70,000 instead.

At the time of writing, Bitcoin was trading at around $99,580, just shy of the $100,000 mark, with a 1.4% increase over the past 24 hours.