Institutional funds make a big comeback, with Bitcoin ETF attracting $750 million in a single day, hitting a three-month high

On January 14th, the US spot Bitcoin ETF experienced a strong rebound. The net inflow for the day was approximately $750 million, reaching a new high since early October 2025. This figure reflects not just short-term capital influx but also a clear revival in institutional investors’ demand for Bitcoin allocation after year-end adjustments. Notably, this inflow is widespread—multiple products such as Fidelity, Bitwise, BlackRock, and others recorded large subscription amounts, indicating a systemic institutional allocation behavior rather than isolated product fluctuations.

Why Has Institutional Demand Suddenly Increased?

Multiple Products Converge to Drive Systemic Allocation

According to the latest data, the distribution of inflows into US spot Bitcoin ETFs on Tuesday is as follows:

This diversified inflow pattern is crucial. If only a single product attracted capital, it might reflect investor preference for that specific product. But now, all mainstream products are absorbing funds, indicating that institutional allocation demand is systematically recovering.

Macro Environment Benefits from Three Key Factors

A quick overview of the main factors supporting this inflow:

• Improved Inflation Expectations: The US Consumer Price Index continues to decline, reinforcing market expectations of a shift in monetary policy within the year. Easing expectations generally benefit risk assets, including Bitcoin.

• Gradual Clarification of Policy Framework: Progress in the US Senate’s review of the crypto market structure bill has improved policy outlooks. Clarification of regulatory frameworks helps boost institutional confidence in entering the crypto market.

• End-of-Year Adjustments Completed: The de-risking operations and cautious sentiment at the end of 2025 have been digested. Investors are gradually reallocating into digital assets, especially US spot Bitcoin ETFs known for compliance and low operational barriers.

Price Performance and Structural Opportunities

Demand-Driven Price Rise Is More Sustainable

In the past 24 hours, Bitcoin has risen about 3%, trading above $94,000. But more noteworthy is the driving force behind this rally—the amount of Bitcoin absorbed by ETFs has significantly exceeded new supply from miners.

What does this imply? Traditional views suggest supply pressure comes from miner sell-offs. When ETF absorption exceeds new miner supply, the market is effectively in a supply-demand deficit. This creates a medium-term structural bullishness—the support for prices is not just short-term sentiment but genuine supply-demand imbalance.

Ethereum Also Rises, Mainstream Assets Gaining Attention

It’s worth noting that Ethereum ETFs also recorded a positive inflow of $130 million, with gains exceeding 6%. This indicates that the current capital flow is not limited to Bitcoin but covers mainstream crypto assets. Vincent Liu, Chief Investment Officer at Kronos Research, pointed out that capital movements are closely related to macroeconomic improvements—this is a reassessment of the entire risk asset class rather than a mere hype around a single asset.

Institutional Power in 2026

Data from the first week of 2026 shows this momentum continues. According to relevant statistics, the total inflow into BTC ETFs in the first week was about $1.2 billion, which annualized at nearly $150 billion at this pace. While not a direct projection, it at least indicates that institutional willingness to allocate has not waned.

It’s noteworthy that the veteran product Grayscale GBTC continues to outflow, while new-generation ETF products are absorbing shares. This reflects a market preference upgrade towards low-cost, high-efficiency products, a normal progression in industry development.

Summary

The large-scale capital inflow into Bitcoin ETFs fundamentally signals three things: First, institutional investors’ demand for crypto asset allocation is systematically recovering; second, macroeconomic and policy outlook improvements support this reflow; third, the structural supply shortage driven by spot demand provides medium-term price support.

From the market rhythm perspective, the crypto market in 2026 is gradually recovering from the previous adjustment phase. Institutional strength is once again a key variable, consistent with the broader trend of increased institutional participation since 2024. Future focus should be on whether this inflow can be sustained under supportive policies and macro conditions, and whether it will attract more institutional participants.