U.S. spot Bitcoin ETFs have kicked off 2026 with remarkable momentum, signaling a sharp shift in institutional appetite. In just the first two trading days of the year, these funds attracted over $1.2 billion in net inflows, prompting Bloomberg ETF analyst Eric Balchunas to say Bitcoin ETFs have entered the year “like a lion.” At the current pace, annual inflows could reach $150 billion, a figure that would dwarf 2025’s totals by nearly 600%.
Strong Start After a Choppy Finish
The surge follows a volatile end to 2025, when Bitcoin experienced a sharp decline amid thin liquidity and year-end positioning. That pressure has now eased. Monday alone saw $697 million in net inflows, the largest single-day total in three months, as Bitcoin reclaimed and held levels above $90,000. While nearly every ETF saw inflows, BlackRock’s iShares Bitcoin Trust (IBIT) once again led the charge, reinforcing its dominance in the space.
For context, spot Bitcoin ETFs recorded $21.4 billion in net inflows in 2025, down from $35.2 billion in 2024. The explosive start to 2026 suggests renewed confidence rather than short-term speculation.
A Structural Demand Shift?
According to Sygnum CIO Fabian Dori, the renewed ETF demand has deeper implications for market structure. He notes that consistent ETF inflows are steadily absorbing circulating Bitcoin supply, potentially setting the stage for a longer-term supply-demand imbalance rather than a fleeting rally driven by leverage or hype.
That said, momentum showed early signs of cooling midweek, with preliminary data pointing to possible outflows from select funds like Fidelity, highlighting that ETF flows can still fluctuate day to day.
Big Institutions Double Down
Adding to the bullish narrative, Morgan Stanley filed with the SEC to launch Bitcoin and Solana ETFs, placing the Wall Street giant alongside BlackRock and Fidelity. With roughly $8 trillion in advisory assets, Morgan Stanley’s entry could significantly broaden access and further legitimize crypto ETFs as a mainstream investment vehicle.
Overall, Bitcoin ETFs are starting 2026 with strength, optimism, and growing institutional backing, setting a powerful tone for the year ahead.
X user WhalePanda points out a familiar market irony, noting that heavy bullish chatter often intensifies near local tops, especially when altcoins rally while Bitcoin underperforms. Eric Balchunas counters the concern by emphasizing perspective, highlighting that Bitcoin is still up around 6% year-to-date, an impressive move when annualized, suggesting the broader trend remains healthy despite short-term noise.
Looking ahead, Balchunas estimates Bitcoin ETF inflows in 2026 could land anywhere between $20 billion and $70 billion, largely hinging on price action, with stronger inflows likely if Bitcoin pushes toward the $130,000–$140,000 range.
Reinforcing the bullish outlook, crypto analyst Nathan Jeffay adds that even a slowdown in current inflows could be enough to establish a six-figure Bitcoin price floor by the end of Q1, reflecting the growing impact of sustained institutional demand.
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FAQs
U.S. spot Bitcoin ETFs let investors gain direct Bitcoin exposure through regulated stock markets, boosting accessibility, liquidity, and institutional participation.
Consistent ETF inflows absorb circulating supply, which can tighten supply-demand dynamics and support higher or more stable Bitcoin prices.
Strong and steady ETF demand could help establish a six-figure Bitcoin price by reducing available supply and reinforcing long-term investor confidence.
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