Bitcoin ETFs See Inflows Resume as BTC Surges Past $100K Following US CPI Report

Bitcoin exchange-traded funds (ETFs) experienced a remarkable recovery on January 15, 2025, as the total net inflow for the day reached $755.01 million. This marked a significant turnaround after a four-day streak of outflows, during which over $1.2 billion had been withdrawn from these funds. The inflows came as Bitcoin’s price surged, briefly breaking the $100,000 threshold and reaching a daily high of $100,702 on January 16, driven by positive economic data from the U.S. Department of Labor’s December Consumer Price Index (CPI) report.

The main contributor to the inflows was Fidelity’s FBTC, which saw $463.08 million in net inflows, the highest since March 7, 2024. This massive jump was followed by ARK and 21Shares’ ARKB, which reported an inflow of $138.81 million, a sharp increase from just $2.89 million the day before. The positive momentum was widespread across other Bitcoin ETFs as well, including Grayscale’s GBTC, Biwise’s BITB, and BlackRock’s IBIT, all of which recorded substantial inflows on January 15. The total trading volume across the 12 Bitcoin ETFs surged to $3.18 billion, a significant increase from $2.23 billion the previous day, showing heightened investor interest in the asset class.

The primary catalyst behind this rally was the release of the U.S. December CPI data. The headline CPI for December rose 0.4% month-on-month, in line with expectations, and saw a 2.9% annual increase. More importantly, the Core CPI, which excludes volatile items like food and energy, increased by only 0.2% month-on-month and showed a slight dip in the annual rate to 3.2%, down from 3.3% in November. These figures suggested that inflation was cooling, which in turn raised expectations that the U.S. Federal Reserve might ease its tightening stance, ultimately benefiting the cryptocurrency market.

Bitcoin’s surge to $100,702 was also complemented by a broader market rally. As of the latest data, Bitcoin was trading at approximately $99,359, up 2.5% on the day, reflecting strong bullish sentiment among investors. This increase brought the total market capitalization of cryptocurrencies to $3.63 trillion, contributing to a sense of optimism in the space.

In addition to Bitcoin’s performance, Ethereum ETFs also saw notable inflows. The total net inflow into the nine Ethereum ETFs on January 15 amounted to $59.78 million, compared to just $1.15 million on the previous day. Fidelity’s FETH ETF led this growth with $29.32 million, while BlackRock’s ETHA followed with $19.85 million in inflows. Smaller inflows were seen in other Ethereum-focused funds like Grayscale’s Ethereum Mini Trust. As a result, Ethereum also experienced a strong price increase, rising by 4.2% to trade at $3,366 at the time of writing.

This positive development for both Bitcoin and Ethereum highlights the ongoing institutional and retail interest in these digital assets. The resurgence in Bitcoin ETF inflows underscores the growing adoption of Bitcoin as a mainstream financial asset, with investors looking to gain exposure to the cryptocurrency through more traditional investment vehicles. The fact that multiple ETFs, such as those from major players like Fidelity, ARK, and Grayscale, saw significant inflows also speaks to the increasing credibility and institutional acceptance of Bitcoin and other cryptocurrencies.

Looking ahead, the sustained bullish momentum in Bitcoin and Ethereum markets will likely be influenced by additional macroeconomic data, regulatory developments, and continued institutional support. The prospect of a more favorable U.S. Federal Reserve policy, as indicated by the latest CPI report, could further bolster market sentiment and potentially drive even more capital into the cryptocurrency space.

In conclusion, the surge in Bitcoin ETF inflows following the release of the U.S. CPI report is a clear sign of the growing confidence in Bitcoin and other cryptocurrencies. Investors are keenly watching both the economic landscape and the ongoing adoption of blockchain technologies, with Bitcoin and Ethereum poised to potentially hit new price highs in the coming months if the bullish momentum continues.