Bitcoin Spot ETF Inflows Hit $987 Million But Watch This Mid-January Fiscal Deadline

Bitcoin BTC/USD and Ethereum ETH/USD spot ETFs experienced a surge in inflows on Jan. 6, totaling nearly $1.2 billion.

What Happened: Bitcoin ETFs alone saw $987 million in net inflows, with Fidelity's FBTC leading at $370 million and BlackRock's IBIT securing $209 million.

Ethereum ETFs received a net inflow of $129 million, according to data from SoSo Value.

The Ethereum spot ETF market now has a total net asset value of $13.466 billion, with Blackrock's ETHA ETF receiving $124 million alone.

The increased ETF activity coincides with Bitcoin's spot price premium on Coinbase COIN, which analysts at QCP Capital suggest indicates a possible increase in institutional allocations toward Bitcoin ahead of 2025.

This activity is further supported by positive regulatory narratives, notably the potential for a pro-crypto Prime Minister in Canada, according to Polymarket predictions.

Also Read: Gemini Resolves CFTC Lawsuit With $5M Settlement Over Bitcoin Futures Misstatements

What Experts Are Saying: Despite these positive trends, QCP Capital also warns of potential market volatility due to the impending reinstatement of the U.S. Treasury debt ceiling mid-January.

This may create uncertainty and pressure markets through the use of extraordinary measures to fund federal expenditures.

Therefore the surge in inflows is met with an undercurrent of fiscal and political uncertainty, which may see volatility rise as the situation develops throughout the month.

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