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Bitcoin ETFs Draw in $754M as BTC Clears $95K
A surge in Bitcoin's price to $95,000 has triggered the strongest single day of inflows for U.S. spot Bitcoin exchange-traded funds in three months, with these products adding $753.7 million on January 13.
This follows a notable resurgence that began at the start of the year, attributable to institutional rebalancing after year-end tax-loss harvesting, improved macro sentiment, and growing recognition that ETFs provide structural, regulated demand.
The rally, which saw Bitcoin surge to a two-month high, appears to be driving renewed institutional demand. At time of publication, Bitcoin is up 3.3% in the past 24 hours to trade just under $95,000.
“Price is leading narratives and flows.” A breakout above $91,000 after weeks of consolidation has triggered the recent push.
Fidelity’s FBTC led the inflows with a $351.36 million netflow. Bitwise’s BITB and BlackRock’s IBIT followed closely with $159.42 million and $126.27 million netflows, respectively.
The buying pressure boosted total net assets across all U.S. spot Bitcoin ETFs to approximately $123 billion, roughly 6.5% of Bitcoin’s $1.89 trillion market cap.
Can momentum be sustained?
The sustainability of this momentum into Q1 remains a key question, with ETF flows having become volatile and elevated interest rates keeping opportunity costs high for non-yielding assets like Bitcoin. Institutional demand this quarter is likely to be “more selective and cautious rather than acting as a catalyst for sharp breakouts.”
The momentum spilled over into the broader crypto market, lifting its total capitalization by 3.3% to $3.32 trillion.
Altcoins including XRP, Solana, and Dogecoin rose 2% to 6%, buoyed in part by optimism around a new draft crypto market structure bill that could grant them clearer regulatory status.
Crypto Bill Draft Grants XRP, Solana and Dogecoin Same Legal Status as Bitcoin
The bill's advance in the Senate Banking Committee is providing a supportive "narrative perspective" for the market.
Analysts see the proposed legislation, which could classify certain altcoins as "non-ancillary" assets like Bitcoin, as a potential paradigm shift. If passed, the bill could drive institutional inflows into altcoins while pushing other tokens to chase ETFs as a ‘survival hack.’
Bitcoin Advocates Press US Lawmakers on Stablecoin Tax Rules
Outlook is tempered by highlighting the political path ahead, noting that regulators care more about the ‘product wrapper’ than the tech itself, though election politics and SEC-CFTC turf wars remain the real hurdles to this becoming law.
Despite near-term caution, a structurally bullish case remains. Bitwise expects ETFs to buy more than all the new Bitcoin coming onto the market in 2026, a dynamic that could create straightforward supply-demand support as ETF assets are projected to grow significantly by year-end.
This article has been published via yahoo.com.
Bitcoin ETFs Draw in $754M as BTC Clears $95K
Bitcoin ETFs saw their highest daily inflow since October as BTC hit $95,000, but experts exercise caution as demand could be selective.