James Seyffart of Bloomberg Intelligence told me, after one-year mark for US bitcoin spot ETFs launch, that even more optimistic firms were surprised at the response.
Matt Horne is Fidelity Investments’ head of digital assets strategists. Matt Horne has confirmed that to me.
He referred to demand surpassing the company’s capacity. “optimistic” Retail investors, advisors and institutions have different expectations. The Fidelity Wise Origin Bitcoin Fund (FBTC) — with $12.2 billion of net inflows — trails only BlackRock’s iShares Bitcoin Trust (IBIT) in that category ($37.7 billion).
Is the Bitcoin ETF Market due for another slump?
So far, Fidelity is the only company that has had “productive conversations” Horne pointed out that the use of bitcoin ETFs will increase across all customer segments by 2025.
The 16-year old asset was also mentioned by him: “A longer history will allow for continued portfolio research and a stronger understanding of investors’ risk tolerance and bitcoin’s role in a portfolio.”
Horne referred to the “adoption spectrum” The different client types. Related, Bitwise CEO Hunter Horsley said during an X space Friday — using terms from Geoffrey Moore’s “Crossing the Chasm” — that we’re stepping out of the early adopter phase and into the “early majority.”
Horsley said that, in borrowing Winston Churchill’s words, it seems like bitcoin ETF adoption is at its peak. “the end of the beginning.” Explore bitcoin as a business opportunity “on the to-do lists” He pointed out that the US wealth sector is $30 trillion and includes a wide range of firms.
Neena Mehshira of Zacks Investment Research told me that the performance is what will likely determine whether BTC ETF Inflows can beat or match last year’s figures in 2025.
US Bitcoin funds saw outflows between $569m and $149m on Friday and Wednesday (the markets were closed to honour Jimmy Carter Thursday) as a result of the BTC prices plummeting.
Casey brought up the possible US strategic bitcoin reserve — something Seyffart said would drive ETF demand. BTC withdrawals (and outflows of funds) may occur if Trump, and the procrypto Congress, fail to follow through on promises related to crypto.
“Though as more traditional investors use these ETFs, they will likely be a support on bitcoin’s price as they rebalance in downtrends by buying more,” Seyffart pronounced. “Conversely, they will also likely be sellers in uptrends as they rebalance to their target allocation levels over the longer term.”
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