- Bitcoin ETF inflows are projected to double their inflows in 2025.
- BlackRock’s IBIT leads and Thursday’s record outflows are seen as a temporary hiccup.
- Analysts predict Bitcoin will hit $200,000 in 2025.
BlackRock’s spot Bitcoin exchange-traded fund took a $333 million hit on Thursday when iShares Bitcoin Trust saw record daily outflows.
But not only did Bitcoin’s biggest exchange-traded fund recover $253 million of that on Friday according to SoSoValue, analysts expect all US-based ETFs to double their total 2024 $35 billion inflows in 2025.
“We expect Bitcoin ETF inflows to exceed $70 billion in 2025,” research firm Bernstein wrote in a Monday note.
Its researchers cited “accelerated institutional adoption” as a key driver behind the expected record inflows.
They project more investors will tap into Bitcoin on the back of Donald Trump and the Republicans’ election win in November, which signals a more crypto-friendly approach in Washington.
As “regulatory headwinds and intrinsic philosophical resistance” dissipate, institutional funds’ clients will increasingly demand exposure to Bitcoin ETFs, Bernstein said.
Institutional ownership of Bitcoin ETFs will rise to 40%, up from the 22% recorded in 2024, according to Bernstein.
If this forecast holds, ETFs would account for nearly a tenth of Bitcoin’s circulating supply and could become a key component in institutional portfolios.
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Bitcoin ETFs outperform
Spot Bitcoin ETFs had a stellar freshman year, dominating the entire ETF landscape in 2024.
Out of the 740 ETFs launched in 2024, BlackRock’s IBIT emerged as the top performer, amassing over $53 billion in assets within a year.
But the crypto market ended 2024 on a quieter note, with Bitcoin ETFs seeing notable outflows. These outflows are a natural pause rather than a reversal, analysts argue.
“The outflows are expected as institutions pare back risk and window-dress for year-end balance sheet adjustments,” said Paul Howard, senior director at crypto market maker Wincent.
Price implications
Bernstein forecasts Bitcoin could rise to $200,000 by the end of 2025, buoyed by institutional and corporate adoption.
“Bitcoin has been largely held by retail investors, but as corporate treasuries and ETFs become a larger part of Bitcoin ownership, its supply will get increasingly sticky,” the report stated.
Bernstein’s outlook aligns closely with that of Geoff Kendrick, Standard Chartered’s global head of digital assets research, who also predicts Bitcoin to reach $200,000 by late 2025.
Kendrick attributes this growth to regulatory changes under the Trump administration, which he says will make it easier for traditional finance to engage with digital assets.
He added that broader adoption by US retirement funds or sovereign wealth funds could push Bitcoin even higher.
Crypto market movers
- Bitcoin is up 1.9% in the past 24 hours to trade at $99,560.
- Ethereum is up 1.2% over the same period to $3,660.
What we’re reading
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
