
Despite the "DeepSeek" threat and market crash, crypto ETFs saw significant investment inflows, reaching nearly $2 billion in 2 weeks.
Bitcoin ETFs led inflows, exceeding $1.6 billion, with Fidelity and BlackRock's funds attracting the most.
Inflows are driven by pro-crypto executive orders and a belief in softer regulations under the current leadership.
Despite the market drop triggered by DeepSeek’s threat, Exchange-Traded Funds (ETFs) have seen a surge in investment inflows. This rally follows President Donald Trumpโs pro-crypto actions during his first week in office, including executive orders aimed at strengthening digital assets.
These orders, which include plans for a national Bitcoin reserve, have sparked strong investor interest.
Bitcoin and Ethereum ETFs Draw Billions
For the week ending January 25, Bitcoin and Ethereum ETFs attracted $1.9 billion, marking the second straight week of inflows near $2 billion. While this was slightly lower than the previous week, the continued momentum shows growing confidence in digital assets.
Bitcoin ETFs led the way, accounting for $1.6 billion of the total inflows, despite briefly dipping below the $100,000 mark. Bitcoinโs dominance rose to 57.84%, and it has since rebounded, now trading above $102,000.
Fidelity and BlackRock ETFs Lead the Charge
Fidelityโs Wise Origin Bitcoin Fund (FBTC) was the leader with $186.07 million in inflows, bringing its total to $13.04 billion. BlackRockโs iShares Bitcoin Trust (IBIT) followed closely with $155.69 million, reaching $60.62 billion in assets.
Ethereum ETFs also saw strong inflows of $205 million, although this was slightly down from the previous week. The Bitwise Ethereum ETF (ETHW) led with $6.01 million, while the Invesco Galaxy Ethereum ETF (QETH) saw $1.99 million in inflows.
Other Altcoins See Interest
Smaller tokens such as XRP, Solana, and Polkadot also saw moderate inflowsโ$18.5 million, $6.9 million, and $2.6 million, respectively. This shows that investor interest in the crypto market is broad, with funds flowing into a variety of assets.
Institutional Interest Grows
The growing interest from big institutions has further boosted ETF inflows. Tuttle Capital recently announced plans to focus on 2x leveraged funds tied to XRP, Solana, Litecoin, Cardano, Chainlink, Polkadot, BNB, Bonkโand even the wildcards TRUMP and MELANIA.
This has given a boost to the market, which remains optimistic with a favorable political outlook. Though no immediate catalysts are in sight, the market is expecting bigger inflows soon.
James Butterfill, Head of Research at CoinShares, believes the strong inflows are mainly due to President Trumpโs executive orders and the growing belief that his leadership will create crypto-friendly regulations. After a decade of resistance, the crypto industry now senses more support from federal regulators, which has boosted market sentiment.
2025 Off to a Strong Start
So far in 2025, $4.8 billion has been invested in digital asset products, marking a strong start to the year. On the other hand, Grayscaleโs GBTC and Bitwise Investโs BITB saw outflows of $97.87 million and $18.54 million, respectively.
Despite these outflows, the overall outlook remains positive as the market anticipates more growth in the months ahead.
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