US investors brought fewer spots into Bitcoin ETFs last week due to the Federal Reserve rate move and alarm about China’s Deepseek AI system.SoSoValue shows that investors pulled $559.84 million out of all 12 Bitcoin ETFs last week, more than two-thirds less than the $1.76 billion they invested the previous week.
Inflow and outflow patterns at the starting week reached $457.48 million due to China’s speedy use of the Deepseek AI platform. Deepseek surged into the market with its low-price AI offering, which posed a threat to ChatGPT, thus kicking off stock market worries and leading to industry-wide financial problems. The crypto market faced major issues that caused investors to pull $1 billion from this sector.
During those days, Bitcoin ETF strategies received back some investments totaling $18.4 million and $92.1 million. Crypto fans across the industry reviewed their investments while waiting for the FOMC meeting to decide on US interest rates, which traders predicted would remain steady at 4.25% to 4.50%.
Bitcoin ETFs Surge 500% After Fed Rate Announcement
When the Federal Reserve announced it would maintain low interest rates on January 29, Bitcoin ETFs received 500% more funding the following day, reaching $588.22 million. During that period, the BlackRock IBIT product obtained $321.5 million from new investors. The enthusiasm for Bitcoin ETFs expanded through the end of January 2023 as investors poured $318.56 million into these funds.
During this period, Blackrock’s main fund, IBIT, received $363.83 million in investments from global investors. ARK 21Shares and VanEck, respectively, invested $35.59 million and $5.76 million in ARKB and HODL. BITB by Bitwise Inc. and GBTC from Grayscale reported capital outflows totaling $56.03 million and $30.59 million, respectively.
As Global Head of Research for Bitwise Asset Management, Matt Hougan predicts Bitcoin ETFs will collect $35.2 billion by December 2024. According to his predictions, the next year, 2025, will likely attract more investment than 2024 has already achieved. Hougan believes BFITs will receive $50 billion in total investments during 2024 despite expected monthly flow changes in institutional investments.
The Bitcoin ETF sector is expected to grow more in 2025. Professional crypto analysts predict Wells Fargo, Stifel, Raymond James, and UBS will get official permissions to start Bitcoin investment funds in the first four months of 2023. Their entry will drive more institutional money into Bitcoin markets.
UPDATE: expecting additional Bitcoin ETF approvals at multiple wealth management firms by the end of Q1.
Names of note that will broaden availability:
• @WellsFargo
• @Stifel
• @RaymondJames
• @UBS**broadened availability = additional/all $BTC ETF’s available to all…
— Andrew (@AP_Abacus) January 29, 2025
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