US Crypto ETFs Start 2026 With $646 Million in Combined Inflows as Institutional Interest Rebounds

Record-Breaking Start to the New Year

US-based cryptocurrency exchange-traded funds kicked off 2026 with significant institutional interest, as spot Bitcoin and Ethereum ETFs collectively attracted around $646 million in net inflows on the first trading day of the year ^[1].

Spot Bitcoin ETFs led the surge with net inflows totaling $471.3 million, while spot Ethereum ETFs contributed $174.5 million, bringing the combined total to $645.8 million ^[1]. This marked the largest single-day net inflow for Bitcoin ETFs in 35 trading days, dating back to November 11, 2025, when the eleven US-based funds collectively recorded $524 million ^[1].

For Ethereum products, the inflows represented the strongest performance in 15 trading days, the largest since December 9, 2025, when $177.7 million was recorded ^[1].

Institutional Tax Strategy Behind the Surge

The chief marketing officer of Tonso, known as "Wal," attributed the renewed inflows to institutional trading patterns, stating that "lots of institutional investors sold their $BTC in Q4 '25 to tax loss harvest" and are now "loading up" ^[1]. The executive emphasized that "this is just the beginning" ^[1].

Market observers frequently interpret ETF inflows as indicators of mainstream investor sentiment toward cryptocurrency assets and potential signals for short-term price movements ^[1].

Challenging Market Context

The strong start comes after a difficult period for crypto markets. Over the preceding 30 days, Bitcoin and Ethereum spot prices declined 1.56% and 1.39% respectively, continuing a broader downturn that began after Bitcoin reached a record high of $125,100 on October 5, 2025 ^[1]. This peak was followed by a widely reported $19 billion liquidation event on October 10, 2025 ^[1].

The market downturn has led to increased caution among participants. The Crypto Fear & Greed Index, which tracks overall market sentiment, has oscillated between "Extreme Fear" and "Fear" territory since early November, returning to "Extreme Fear" with a score of 25 on Sunday ^[1].

2025 Full-Year Performance

Despite the challenging final months of the year, US investors poured more than $31.77 billion into US crypto ETFs throughout 2025 ^[1]. Spot Bitcoin ETFs captured the majority of investor interest, accumulating $21.4 billion in net inflows for the year, though this represented a decline from the $35.2 billion in net inflows recorded in 2024 ^[1].

Tether Expands Bitcoin Reserves

In related institutional activity, Tether increased its Bitcoin holdings by purchasing 8,888 BTC, continuing its strategy of using digital assets to back its stablecoin issuance ^[2]. According to company statements, Bitcoin and precious metals already constitute a significant portion of its backing reserves ^[2]. The acquisition occurred during a period of growing uncertainty in traditional financial markets, potentially signaling broader institutional appetite for Bitcoin as a reserve asset ^[2].

Bitwise Seeks Altcoin ETF Expansion

Asset manager Bitwise has filed applications with the SEC for eleven new crypto-related exchange-traded products, including major cryptocurrencies like Ethereum and Solana, as well as altcoins such as Chainlink, Uniswap, and Avalanche ^[2]. The planned ETFs would be physically backed and track the respective spot prices of the cryptocurrencies, positioning the firm for a potential crypto ETF expansion in the US market pending SEC approval ^[2].