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After being hit First anniversary About the launch of bitcoin ETFs in the US, James Seyphart of Bloomberg Intelligence told me that even the most optimistic companies behind these products have been surprised by the reception.

Matt Horn, chief digital asset strategist at Fidelity Investments, confirmed this to me.

He noted that demand exceeds the company's "optimistic" expectations among individual investors, advisors and institutions. The Fidelity Wise Origin Bitcoin Fund (FBTC) — with $12.2 billion in net inflows — trails only BlackRock's iShares Bitcoin Trust (IBIT) in this category ($37.7 billion).

But is the Bitcoin ETF market set for a second-year decline?

So far, Fidelity has had "productive conversations" across all customer segments when it comes to this Bitcoin ETF usage on the rise In 2025, Horn explained.

He also said of the 16-year-old asset: “A longer history will allow for continued portfolio research and a stronger understanding of investors’ risk tolerance and the role of Bitcoin in the portfolio.”

Horn mentioned the “adoption spectrum” of different types of clients. Related, Bitwise CEO Hunter Horsley said during Space

Horsley then borrowed the words of Winston Churchill to describe the adoption of Bitcoin ETFs, adding that it feels like we are at “the end of the beginning.” Exploring Bitcoin as an opportunity remains “on the to-do lists” across $30 trillion companies Wealth management sector in the United StatesHe pointed out.

But as Nina Mishra of Zacks Investment Research told me on Friday, whether BTC ETF inflows in 2025 can match/beat last year's will likely hinge on performance.

US Bitcoin funds suffered outflows of $569 million and $149 million on Wednesday and Friday, respectively, (markets were closed on Thursday to honor Jimmy Carter) amid the previously mentioned Bitcoin price decline.

Casey talked about the potential US Strategic Bitcoin Reserve, something Seyfart said would boost demand for ETFs. But a Bitcoin withdrawal (and outflows) could come if Trump and a pro-crypto Congress fail to follow through on crypto promises.

“Although more traditional investors are using these ETFs, they will likely act as a support for the price of Bitcoin as they rebalance in downtrends by buying more,” Seyfart said. “Conversely, they are also likely to sell in uptrends as they rebalance to longer-term target allocation levels.”

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