Spot Bitcoin ETFs in the U.S. started 2026 with a surge of investment that caught some market observers off guard and boosted optimism among others. According to Bloomberg senior ETF analyst Eric Balchunas, these funds attracted over $1.2 billion in just the first two trading days of the year. He noted that if this pace continues, annual inflows could reach around $150 billion—roughly 600% higher than the total for 2025. Balchunas remarked that the spot Bitcoin ETFs are “coming into 2026 like a lion.”
Reports indicate that nearly every major spot Bitcoin ETF saw inflows during those initial sessions, a trend Balchunas described as broad-based. The WisdomTree Bitcoin Fund (BTCW) was a rare exception, not matching the same level of demand. BlackRock’s iShares Bitcoin Trust (IBIT) was reported to have captured a significant portion of last year’s investments.
Last year, spot Bitcoin ETFs recorded net inflows of over $21 billion, down from $35 billion in 2024. However, Monday’s single-day net inflow of $697 million marked the largest daily intake in three months, occurring as Bitcoin traded back above the low $90,000s. The move was supported by rising trading volume and the closing of some short positions.
Institutional interest continues to grow, with reports showing that Morgan Stanley has filed with the SEC to offer both Bitcoin and Solana ETFs. This move places a major wealth manager alongside established issuers. Balchunas highlighted that Morgan Stanley manages about $8 trillion in advisory assets and has already authorized its advisors to allocate to such products. According to the filing, the firm’s proposed Bitcoin trust would track the spot price and avoid leverage or derivatives.
Analysts suggest that sustained ETF demand could absorb circulating Bitcoin supply, potentially reducing liquidity for traders and the amount of BTC available on exchanges. However, early data showed signs of uneven flows, with preliminary figures indicating a large outflow from one Fidelity fund on Tuesday, raising the possibility of a net outflow for the day once all data is finalized.
Meanwhile, Bitcoin’s price remained resilient amid geopolitical headlines involving Venezuela and the capture of its leader, Nicolas Maduro, by U.S. special forces. The cryptocurrency held steady around the low $90,000s and even climbed past $93,000 at times. Traders and analysts attributed the upward move to short position liquidations and a rebound in other risk assets. Some on-chain observers noted accumulation by larger holders, while others suggested markets viewed the news as a concluded event rather than a new shock.
Frequently Asked Questions
Frequently Asked Questions About Bitcoin ETFs
Beginner Questions
1 What is a Bitcoin ETF
A Bitcoin ETF is an investment fund that tracks the price of Bitcoin You can buy and sell shares of the ETF on a traditional stock exchange just like you would a stock without having to buy and store the actual cryptocurrency yourself
2 Why is there so much excitement about them
They provide a much easier and more familiar way for everyday investors and large institutions to gain exposure to Bitcoins price through their regular brokerage accounts instead of dealing with crypto exchanges and digital wallets
3 What does 12 billion flowing in mean
It means that in just the first two days after several new Bitcoin ETFs launched investors collectively put 12 billion of their money into these new funds This strong initial demand shows high investor interest and confidence
4 Is a Bitcoin ETF the same as buying Bitcoin
Not exactly When you buy a Bitcoin ETF you own shares of a fund that holds Bitcoin You get exposure to Bitcoins price movement but you do not own the actual Bitcoin cannot use it for payments and dont have a private key to a crypto wallet
Intermediate Advanced Questions
5 What are the main benefits of investing through a Bitcoin ETF
Convenience Familiarity Trade within your existing brokerage account
Regulatory Oversight ETFs are regulated by the SEC offering a layer of investor protection
Security You dont have to worry about the technical risks of storing crypto
Liquidity They are traded on major exchanges making it easy to buy and sell
6 What are the potential downsides or risks
Fees ETFs charge management fees which slightly reduce your returns over time
Tracking Error The ETFs price might not perfectly match the exact spot price of Bitcoin
Counterparty Risk You are relying on the fund issuer to properly hold and secure the underlying Bitcoin
Volatility The investment is still subject to Bitcoins famous price swings
7 Are all the new Bitcoin ETFs the same
No There are key differences primarily between