Bitcoin ETF Inflows Soar as Institutional Investors Respond to Core CPI Decline

• Bitcoin ETFs saw $755M inflows, led by Fidelity’s $463M, as institutional investors capitalized on inflation-driven optimism.
• Over 7,500 Bitcoins were purchased via ETFs, outpacing the daily production of 450 BTC, signaling strong institutional demand.
• Thailand’s SEC is reviewing its first Bitcoin ETF proposal, reflecting global interest in Bitcoin-backed investment products.

Bitcoin exchange-traded funds (ETFs) recorded a significant inflow of $755 million, marking a turnaround after days of outflows. This surge in investment coincided with the latest Consumer Price Index (CPI) report, which showed inflation rising by 0.4% in December. The annual inflation rate now stands at 3.2%, fueling optimism among investors about potential interest rate cuts.

We just provided some information for a nation state asking about Bitcoin ETFs.

Considering moving some exposure from foreign currency govt bonds into BTC.

Bitcoin is entering a new chapter —

— Hunter Horsley (@HHorsley) January 15, 2025

Fidelity Leads the Bitcoin ETF Inflow Surge

Institutional interest in Bitcoin ETFs has risen sharply, with Fidelity’s FBTC leading the charge with $463.1 million in inflows. Ark Invest’s ARKB also saw substantial inflows, totaling $138.8 million.

Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) attracted $31.9 million, alongside a trading volume of $2.35 billion. This collective inflow represents a significant shift in investor sentiment, particularly as the market responds to inflation data and anticipates changes in Federal Reserve policy.

Demand for Bitcoin Outpaces Daily Supply

The latest data reveals that over 7,500 Bitcoins were purchased through ETFs, surpassing the daily production of just 450 BTC. This imbalance reflects strong institutional demand for Bitcoin as a hedge against inflation and economic uncertainty.

Interest in Bitcoin ETFs is not limited to the United States. Reports indicate that global investors are also exploring opportunities to diversify into Bitcoin-backed investment products.

Thailand’s Securities and Exchange Commission (SEC) is currently evaluating the approval of the country’s first Bitcoin ETF. Additionally, Bitwise Invest’s CEO, Hunter Horsley, confirmed inquiries from several nations considering a pivot from government bonds to Bitcoin investments.

Market Optimism Spreads To Financial Markets

The CPI data and subsequent speculation of a potential Federal Reserve rate cut have boosted traditional financial markets as well. The S&P 500 rose by over 100 points, adding approximately $900 billion in market value.

This rally in equities likely supported the increase in Bitcoin prices, further encouraging institutional investors to capitalize on the dip.

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