The first trading week of 2025 has revealed significant trends in Bitcoin and Ethereum ETFs, marked by large outflows and diverging performance across the two largest cryptocurrencies. From December 30, 2024, to January 3, 2025, Bitcoin ETFs saw inflows of $256 million, while Ethereum ETFs recorded a net outflow of $38.1 million, signaling contrasting investor sentiment.
According to Spot On Chain,On January 2, 2025, BlackRock’s iShares Bitcoin Trust (IBIT) experienced a record-breaking outflow of $332.6 million, equivalent to 3,413 BTC. This surpasses its previous low of $188.7 million, recorded on December 24, 2024. These substantial outflows mark three consecutive weeks of record-breaking exits from the ETF, highlighting a shift in institutional sentiment.
Despite the outflows, BlackRock remains the largest holder of Bitcoin through its IBIT fund, with approximately 548,505 BTC, valued at $52.81 billion. In 2024, BlackRock accumulated a total of $37.2 billion in Bitcoin ETF inflows, reflecting strong interest earlier in the year.
Ethereum ETFs, which had seen steady inflows for six consecutive weeks, reversed this trend with a net outflow of $38.1 million during the same period. Notably, Grayscale’s Ethereum Trust (ETHE) and Bitwise’s Ethereum ETF (ETHW) accounted for significant outflows, with $21.4 million and $56.1 million withdrawn, respectively.
BlackRock’s Ethereum ETF (ETHA), which garnered $3.53 billion in inflows in 2024, reported no activity during the first trading days of 2025. As of now, BlackRock holds approximately 1,071,415 ETH, valued at $3.68 billion, making it the largest institutional holder of Ethereum.
ETF Market Trends, BlackRock’s Dominance, and Outlook
The contrasting flows in Bitcoin and Ethereum ETFs point to diverging investor sentiment at the start of the year. Bitcoin’s strong inflows of $256 million during the week suggest continued confidence in the asset as a store of value, even amid significant outflows from BlackRock’s IBIT. Institutional investors may be reallocating funds across various ETFs, balancing short-term volatility with long-term potential.
On the other hand, Ethereum’s weekly outflow signals a cooling of enthusiasm, possibly due to macroeconomic factors or a shift in sentiment following the strong performance in late 2024. The reversal comes after a six-week rally in Ethereum ETF inflows, raising questions about the sustainability of investor interest in Ethereum-based products.
Despite the recent outflows, BlackRock continues to dominate the cryptocurrency ETF space. With a combined holding of $56.49 billion in Bitcoin and Ethereum, the asset manager remains a key player in shaping institutional adoption of digital assets. The record-breaking outflows, however, underscore the volatility and evolving dynamics of the cryptocurrency market.
As 2025 unfolds, the performance of Bitcoin and Ethereum ETFs will be closely monitored by market participants. Bitcoin’s ability to attract inflows despite significant outflows from BlackRock highlights its resilience and enduring appeal among institutional investors. Conversely, Ethereum faces challenges in maintaining momentum, with the first weekly outflow in six weeks signaling potential headwinds.
The contrasting trends reflect the dynamic nature of the cryptocurrency market and the growing role of ETFs in shaping investment strategies. As institutional and retail investors navigate these shifts, the trajectory of Bitcoin and Ethereum ETFs will serve as a barometer for broader market sentiment and adoption trends.
