After the year ended with a significant round of profit-taking and withdrawals, cryptocurrency funds, mostly headed by Bitcoin and Ethereum ETFs, have accumulated $585 million in assets in the first three days of 2025. According to a recent study from digital asset managers. ETF Inflows CoinShares.Market Capitalizations. The robust start follows a record-breaking year for crypto-based exchange-traded products.
Bitcoin ETF Inflows Surge
Overall, $44 billion in assets moved into these funds, which is more than four times the previous high set in 2021, according to James Butterfill, Head of Research at CoinShares.Currently, 29% of the assets under management that the European firm tracks are bitcoin funds. According to statistics from Farside Investors, $908 million worth of shares were sold by Bitcoin ETF issuers on Friday alone.
In a message to investors, Markus Thielsen, CEO of 10x Research, stated that the performance of Bitcoin by the end of January will be a crucial indicator. Market Capitalizations Have significantly slowed since the hawkish December FOMC meeting, which has been exacerbated by less favorable global liquidity conditions.
CME FedWatch Tool Signals Rate Hold
According to the CME Group FedWatch Tool, traders overwhelmingly anticipate that the Fed will maintain current rates with 23 days remaining. The CME program predicts the results that investors anticipate from the next Federal Open Markets Committee meetings based on data from futures trading.
It might not be a significant macroeconomic indication for Bitcoin, even if it does. Bitcoin ETF InflowsEach FOMC meeting that concluded without a change to the Fed’s main interest rate proved disastrous for the price of Bitcoin for a while. However, the impact on the price has been less noticeable since the Fed officially dropped rates in September, the first time in four years.
Bitcoin Consolidation Expected
However, BRN analyst Valentin Fournier thinks consolidation. This may follow any strong price action that occurs later this month when President-elect Donald Trump takes office. Bitcoin has been steadily increasing since Christmas. This pattern is expected to continue until Trump’s.
Inauguration on January 20th, he added, as there is no bad news imminent. If market expectations are not fulfilled at that point, a decline can happen. Based on the market capitalizations. Bitcoin and Ethereum, we advise preserving .A significant level of exposure to digital assets.
Summary
Early in 2025, cryptocurrency funds saw a boom, with Bitcoin. Ethereum ETFs leading the way. In the first three days, they amassed $585 million in assets. Inflows into Bitcoin ETFs have declined since the hawkish. Fed meeting in December, but they have still reached record highs of $44 billion. Bitcoin ETF Inflows Since the rate cut. September, Market Capitalizations Bitcoin has not been as significantly impacted by the. Fed’s potential to hold rates, according to the CME FedWatch tool.
