Spot Bitcoin ETFs See $457M Single-Day Inflows as Analysts Warn of Coming Market Saturation

Major Inflows Signal Renewed Institutional Interest

Spot Bitcoin exchange-traded funds recorded $457 million in net inflows on Wednesday, marking their strongest single-day intake in more than a month as institutional demand showed signs of re-acceleration ^[1].

Fidelity's Wise Origin Bitcoin Fund (FBTC) led the inflows, recording the largest daily intake at roughly $391 million, accounting for the majority of the day's net inflows ^[1]. BlackRock's iShares Bitcoin Trust (IBIT) followed with around $111 million, according to data from Farside Investors ^[1].

The inflows lifted cumulative net inflows for US spot Bitcoin ETFs to more than $57 billion, while total net assets climbed above $112 billion, equivalent to around 6.5% of Bitcoin's total market capitalization ^[1]. Spot Bitcoin ETFs last saw inflows above $450 million on Nov. 11, when funds pulled in roughly $524 million in a single day ^[1].

Early Positioning Rather Than Late-Cycle Enthusiasm

Vincent Liu, chief investment officer at Kronos Research, characterized the renewed interest as reflecting early positioning rather than late-cycle enthusiasm ^[1]. "ETF inflows feel like early positioning," Liu said. "As rate expectations soften, BTC becomes a clean liquidity trade again. Politics sets the mood, but capital moves on macro" ^[1].

However, Liu cautioned that while momentum could continue, it is unlikely to be smooth. "Momentum likely holds, but expect it to be uneven," he said. "Flows will track liquidity and price action. As long as BTC remains a clean macro expression, ETFs stay the path of least resistance" ^[1].

The rebound followed a choppy stretch in November and early December, when flows alternated between modest inflows and sharp outflows ^[1].

Warning of Coming ETF Liquidations

Despite the recent positive flows, Bloomberg ETF analyst James Seyffart warned that a surge of crypto ETF launches in 2026 could lead to widespread liquidations later ^[2]. Seyffart highlighted that research from crypto asset manager Bitwise projects more than 100 crypto ETFs could launch next year ^[2].

He noted that 126 ETF filings are currently awaiting SEC approval, adding, "Issuers are throwing A LOT of product at the wall" ^[2]. The risk is that supply outstrips demand, making it difficult for many products to achieve a sustainable level of assets under management, particularly if the crypto market stays in a funk ^[2].

"We're going to see a lot of liquidations in crypto ETP products," Seyffart said. "Might happen at tail end of 2026 but likely by the end of 2027" ^[2].

New SEC Standards Streamline Launch Process

Seyffart's warning follows a September decision by the US Securities and Exchange Commission to approve generic listing standards for crypto ETFs ^[2]. This enables national securities exchanges such as the New York Stock Exchange, Nasdaq, and Cboe, to list certain commodity-based exchange-traded products tied to cryptos ^[2].

Before approving the generic listing standards, the SEC had reviewed every crypto ETF application on a case-by-case basis, a process that was slow and unpredictable ^[2]. The new standards change the process by setting rule-based, objective criteria, similar to how many traditional commodities ETFs are listed ^[2].

Altcoin Products Struggle to Match Bitcoin Success

While spot Bitcoin ETFs have seen more than $57.7 billion of net inflows since their launch toward the start of 2024, with BlackRock's IBIT leading with over $62.6 billion in cumulative net inflows, other crypto products have lagged significantly ^[2].

Spot ETH ETFs, launched a few months after Bitcoin funds, have seen only $12.636 billion in cumulative net inflows ^[2]. Spot SOL ETFs have attracted just $725 million in total inflows ^[2]. However, spot XRP ETFs, the youngest products in the market, have managed to surpass $1.1 billion in total net assets following a multi-day inflows streak since their debut ^[2].

Indications that liquidation trends from traditional finance could make their way to crypto have already emerged, with several crypto products liquidated in 2025, including the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) ^[2].