US spot Bitcoin Exchange Traded Funds (ETFs) experienced a significant rebound on Friday, with $908 million in net inflows, a substantial recovery from Thursday’s $242 million outflow, according to data from Farside Investors.
Among the frontrunners, BlackRock’s iShares Bitcoin Trust (IBIT) netted $253 million, effectively ending a three-day negative streak during which the fund lost $392 million. Following this recovery, the fund’s total net inflows bounced back to $37 million, with holdings of 548,506 Bitcoin valued at a staggering $53.4 billion.
Fidelity’s Bitcoin Fund (FBTC) led the charge with a mammoth $357 million in net inflows, marking one of its strongest daily performances since the fund’s launch. As of January 3, the FBTC has amassed over $12 billion in new investments.
The ARKB fund, jointly managed by ARK Invest and 21Shares, also showed impressive performance, recording $222 million in net inflows. Other funds, including Bitwise, Grayscale (BTC), and VanEck, followed suit with notable gains. Meanwhile, other ETF providers did not report any flows.
In terms of Bitcoin’s value, the digital currency reclaimed the $98,000 mark on Friday, surpassing this value for the first time since December 26, according to data from CoinGecko. Currently, Bitcoin is trading above $98,000, indicating a 4% increase over the past week.
Analysts are predicting a bullish year for Bitcoin, driven by growing institutional and national adoption. Galaxy Research projects that by 2025, five Nasdaq 100 companies and five nations will add Bitcoin to their balance sheets to diversify their portfolios and meet their trading settlement needs. The firm also predicts that US spot Bitcoin ETFs will reach a monumental $250 billion in assets under management.
Jan van Eck, CEO of VanEck, suggests that investors should consider increasing their holdings in Bitcoin and gold through 2025. He argues that these assets provide important protection against inflation, fiscal uncertainty, and global de-dollarization trends.
Van Eck also projects that Bitcoin could potentially reach a value of $150,000 to $170,000. This optimistic prediction is echoed by other financial analysts and institutions who recognize Bitcoin’s potential as a hedge against financial risks. As we move further into 2022, the world watches with bated breath to see how Bitcoin will perform.
