Bitcoin ETFs Bring The Heat: $1.2 Billion Flows In First 48 Hours—Analyst

Overview

Spot Bitcoin ETFs in the United States experienced a significant influx of cash at the beginning of 2026, surprising many market observers. In the first two trading days, these funds attracted over $1.2 billion, indicating a strong start to the year for Bitcoin-related investment vehicles.

ETF Flows Surge Early

According to Eric Balchunas, a senior ETF analyst at Bloomberg, the inflow of more than $1.2 billion into spot Bitcoin ETFs during the first two days of trading could suggest a potential annualized inflow of approximately $150 billion if this momentum continues. This figure would represent a notable increase compared to the previous year’s total inflows. Balchunas characterized the influx as broad-based, with nearly all major spot Bitcoin ETFs seeing increased demand, except for the WisdomTree Bitcoin Fund. Notably, BlackRock’s iShares Bitcoin Trust was reported to have captured a significant portion of the previous year’s buying activity.

In the previous year, spot Bitcoin ETFs recorded net inflows exceeding $21 billion, a decline from $35 billion in 2024. However, the first trading day of 2026 marked a significant rebound, with a single-day net inflow of $697 million—the largest intake in three months. This uptick coincided with Bitcoin trading above the low $90,000s and an increase in trading volume. Additionally, some traders closed positions that had anticipated a price drop, contributing to the price movement.

Institutional Moves and New Filings

In a noteworthy development, Morgan Stanley filed with the SEC to launch both Bitcoin and Solana ETFs. This move positions the wealth management giant alongside established ETF issuers. Morgan Stanley manages approximately $8 trillion in advisory assets and has already authorized its advisors to allocate investments to these products. The proposed Bitcoin trust aims to track the spot price of Bitcoin while avoiding leverage or derivatives.

How the Flows Affect the Market

Analysts believe that the demand for ETFs could absorb a significant portion of the circulating Bitcoin supply. If this trend persists, it could alter the liquidity available to traders and decrease the amount of Bitcoin offered on exchanges. However, preliminary figures indicated a large outflow from a Fidelity fund, which raised the possibility of a net outflow for the day once all data were finalized.

Bitcoin Price Amid Geopolitical Noise

Despite geopolitical tensions, including events involving Venezuela and the capture of its leader, Bitcoin’s price remained stable, fluctuating around the low $90,000s and occasionally surpassing $93,000. Traders attributed this stability to liquidations of short positions and a rebound in other risk assets. Some analysts observed accumulation by larger holders, suggesting that the market was treating geopolitical news as a resolved issue rather than a new shock.

From author

The recent surge in Bitcoin ETF inflows highlights a growing interest in cryptocurrency investment vehicles, particularly as institutional players like Morgan Stanley enter the space. The substantial cash flow at the beginning of the year indicates a potential shift in market dynamics, especially regarding Bitcoin’s availability for trading.

Impact on the crypto market

• The significant inflow into Bitcoin ETFs could lead to reduced liquidity in the Bitcoin market.
• Increased institutional participation may enhance the credibility of Bitcoin as an asset class.
• A sustained inflow might create upward price pressure on Bitcoin as demand outstrips supply.
• The successful launch of new ETFs could encourage further investment in the cryptocurrency space.
• The overall market sentiment may improve, attracting more retail and institutional investors.