CandleFocus

Bitcoin ETFs: Better year or sophomore slump?

The reception for US spot bitcoin ETFs has surpassed expectations, with demand exceeding optimistic projections from firms such as Fidelity Investments. The Fidelity Wise Origin Bitcoin Fund (FBTC) has seen significant net inflows, trailing only BlackRock's iShares Bitcoin Trust (IBIT) in that category. Fidelity has had productive conversations about rising bitcoin ETF usage in 2025 and believes that a longer history will allow for better understanding of investors' risk tolerance and bitcoin's role in a portfolio. The market is transitioning from the early adopter phase to the early majority, but the performance of BTC ETFs in 2025 will depend on market performance. Recent BTC price drops have led to outflows from US bitcoin funds. The possibility of a US strategic bitcoin reserve could drive further ETF demand, but there may also be pullbacks if promises from the pro-crypto Congress are not fulfilled. Traditional investors using ETFs may provide support for bitcoin's price in downtrends and be sellers in uptrends as they rebalance their portfolio allocations.

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