IBIT’s outflows overshadowed the inflows from its competitors like Fidelity and Bitwise. Despite these recent outflows, Bitcoin ETFs hold over 5.7% of Bitcoin’s total supply. Analysts also predict that Bitcoin's price could reach $200,000 in 2025, driven by ETF adoption and institutional interest, though regulations and market dynamics are still critical factors. Meanwhile, South Korea's KOSDAQ is exploring crypto ETFs and security token offerings to revitalize its markets, while Russian experts tout Bitcoin’s potential as a “super currency” to counteract sanctions. Bitcoin ETFs Start 2025 with a Shakeup BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest daily outflow since its launch, as US markets resumed trading after the New Year’s Day holiday. On Jan. 2, the spot Bitcoin exchange-traded fund (ETF) recorded an outflow of $332.6 million, surpassing the previous record of $188.7 million that was set on Dec. 24, 2024. Bitcoin ETF flow (Source: Farside Investors ) This was the third consecutive trading day of outflows for IBIT, bringing the total for the past week to $392.6 million. Despite this, BlackRock’s fund is still a dominant player in the ETF space, and ranks third in US ETF inflows for 2024 with $37.2 billion. This means it trails the Vanguard 500 Index Fund and iShares Core S&P 500 ETF, which saw inflows of $116 billion and $89 billion, respectively. While the outflows from IBIT raised eyebrows, Bitcoin pioneer Adam Back suggested that the trend might reverse in 2025. Other Bitcoin ETFs, including those managed by Bitwise, Fidelity, and Ark 21Shares, bucked the trend on Jan. 2 by recording inflows of $48.3 million, $36.2 million, and $16.5 million, respectively. Grayscale’s Bitcoin Mini Trust also saw a modest inflow of $6.9 million, though its larger GBTC fund experienced an outflow of $23.1 million. Overall, the day’s total outflows reached $242 million, largely attributed to BlackRock’s record withdrawal that overshadowed the inflows recorded by its competitors. ETF Store president Nate Geraci recently shared some predictions for 2025. The expects the launch of combined spot Bitcoin and Ether ETFs, as well as spot Ether ETF options trading. He also forecasted the introduction of spot Bitcoin and Ether ETFs featuring in-kind creation and redemption, staking mechanisms for Ether funds, and the approval of a spot Solana ETF. US Bitcoin ETFs Hold 5.7% of Supply Despite IBIT’s recent outlaws, US-based spot Bitcoin ETFs are on the verge of a major milestone after a year of record growth in 2024, driven by Bitcoin's surge past the $100,000 mark. The cumulative holdings of US spot Bitcoin ETFs are just over 2% or $2+ billion shy of reaching $110 billion, which represents more than 5.7% of the total Bitcoin supply. BlackRock is still the dominant player in the US Bitcoin ETF market, with its iShares Bitcoin Trust ETF holding more than 542,000 BTC. This gives BlackRock a commanding 47.9% share of the market and makes its fund the 34th-largest ETF globally, including both cryptocurrency and traditional finance products, based on ETF Database data . The growth of Bitcoin ETFs was instrumental in Bitcoin’s rally toward $100,000 as US spot ETFs accounted for around 75% of new Bitcoin investment in 2024. This inflow helped propel Bitcoin past the $50,000 mark by mid-February of 2024 and played a key role in sustaining its upward trajectory. BTC's price action over the past year (Source: CoinMarketCap ) Looking ahead to 2025, BlackRock’s Bitcoin ETF is expected to boost institutional adoption even more by simplifying access for large-scale investors. Ryan Lee , chief analyst at Bitget Research, predicts that this growing adoption, coupled with the ETF market’s expansion, could push Bitcoin’s price to $200,000 during 2025. However, he also warned that the price trajectory will depend on regulatory developments, market dynamics, and broader economic conditions. Bitcoin is currently still about $4,000 below the psychological $100,000 level, with major resistance at $97,600 and $99,000. A breakout above $99,000 could trigger the liquidation of more than $1 billion in leveraged short positions, according to CoinGlass data. Korea Exchange Eyes Crypto ETFs in 2025 The Korea Exchange (KOSDAQ) recently announced its exploration of approving crypto spot ETFs in 2025. The declaration was made by KOSDAQ Chairman Jeong Eun-bo during the 2025 Securities and Derivatives Market Opening Ceremony, where Financial Services Commission (FSC) Chairman Kim Byung-hwan also expressed plans to enable security token offerings (STOs) next year. The move comes after a turbulent end to 2024 for South Korea that was riddled by political instability, including an unsuccessful attempt by President Yoon Suk-yeol to declare martial law in December. This turmoil triggered a stock market sell-off, with both domestic and international investors exiting the market due to concerns about economic and political uncertainty. Prices on the Korea Exchange’s KOSPI index of common stocks over the past year. (Source: Google Finance) KOSDAQ’s Jeong believes that there is a strong need for innovation in the market, and pointed to crypto ETFs as a potential avenue for revitalization. Meanwhile, the FSC's Kim committed to advancing STO legislation, which is a long-awaited development for South Korean companies eager to issue security tokens. Although STO reforms were part of Yoon’s election manifesto, progress slowed down due to political challenges, including corruption allegations and setbacks in midterm elections. Traditional financial institutions and tech firms prepared STO platforms in anticipation of regulatory approval, but the government’s focus shifted away from crypto-related legislation because of the country’s political strife. Kim reassured stakeholders that the FSC is still very determined to institutionalize STOs and to diversify securities issuance Both Jeong and Kim asked for collaboration among lawmakers, corporations, and investors to restore market confidence and attract returning capital. Jeong also urged regulators to dismantle barriers to crypto adoption, and called for institutional frameworks to support the still-growing digital asset sector. With 2025 positioned as a potential turning point, the South Korean financial market could realistically see some renewed interest from both domestic and global investors. BTC: Russia’s 'Super Currency' Crypto could also do good in other countries. Russian expert Evgeny Shatov from Capital Lab suggested that Bitcoin could reach a price of $135,000 by the summer of 2025. Shatov shared his insights in a report that was published by the Russian newspaper Izvestia on Jan. 2. While he is optimistic about Bitcoin's short-term growth, he also warned of a potential slowdown and a consolidation phase later in the year. He explained that Bitcoin is gradually transitioning into the distribution zone, signaling a shift in market dynamics. Shatov projected that Bitcoin dominance, which currently stands at close to 57%, might begin to decline as the market witnesses an increase in altcoins and their overall market capitalization. Shatov also pointed out some historical patterns to support his claims, and compared the current scenario to 2017 when Bitcoin dominance was around 90%, and to 2021, when it fell from 60% to 40%. He predicted that the market is poised to enter a period of major altcoin growth that could potentially reshape the cryptocurrency landscape in 2025. Columnist Olga Samofalova from the state-run media outlet RIA Novosti called Bitcoin a ”super currency” in an opinion piece. She argued that Bitcoin offers unique advantages for Russia, particularly in bypassing US-led sanctions . According to Samofalova, Bitcoin’s decentralized nature, lack of dependence on any central bank, and algorithmic issuance make it an unparalleled tool for cross-border transactions. Samofalova praised Bitcoin's ability to shield transactions from external scrutiny, and believes that it could provide Russian importers and exporters with a much-needed lifeline in conducting business discreetly under challenging global economic conditions. However, she also acknowledged the challenges Bitcoin poses for state oversight of trade operations, and called it a high-risk yet innovative solution for extraordinary times.
