Bitcoin ETF Inflows Surge $755M as Crypto Institutions React to Inflation Data

For the first time in two weeks, Bitcoin has broken the $100K barrier, sparking excitement among investors. This rally follows the U.S. Bureau of Labor Statistics (BLS) report on January 15, 2025, which revealed a surprising 0.4% increase in the Consumer Price Index (CPI) last month.

But that’s just the beginning — this surge has triggered a massive $755.1 million in Bitcoin ETF inflows, with major players like Fidelity’s FBTC leading the charge with $463 million.

Let’s take a closer look at the numbers.

Bitcoin ETFs See a Surge in Investments

A Farside report highlights that Bitcoin ETFs saw a massive $755 million in net inflows as institutional investors jumped at the chance to buy Bitcoin during a dip. This surge is a sharp turnaround after four consecutive days of outflows.

In total, more than 7,500 Bitcoins were bought through these investment products, far exceeding the daily production of just 450 BTC. Fidelity FBTC led the inflow with $463.1 million, followed by Ark Invest’s ARKB with $138.8 million. BlackRock’s iShares Bitcoin Trust (IBIT) saw a smaller influx of $31.9 million but stood out due to its massive trading volume of $2.35 billion.

Global Interest in Bitcoin ETFs Grows

The interest in Bitcoin ETFs is growing beyond the U.S. Bitwise Invest’s CEO, Hunter Horsley, shared that the company has received inquiries from various countries, with some even considering shifting investments from government bonds to Bitcoin.

Additionally, Coinpedia recently reported that Thailand’s Securities and Exchange Commission (SEC) is considering the approval of the country’s first Bitcoin ETF, signaling increased global demand for these financial products.

What Fueling This Surge?

The rise in Bitcoin ETF investments is tied to the recent CPI report, which showed a 0.4% increase in December, bringing the annual inflation rate to 3.2%, following a 0.3% rise in November.

This higher-than-expected inflation has led to speculation about potential interest rate cuts, with the CME FedWatch tool showing a 30% chance of a rate cut in March during the Federal Reserve’s next meeting.

The broader market also saw a boost, with the S&P 500 rising by over 100 points, adding $900 billion in value. This positive movement in traditional markets helped lift Bitcoin’s price, further fueling investor interest in the cryptocurrency.

As more countries explore Bitcoin ETFs, the global embrace of digital assets is becoming harder to ignore.