Bitcoin ETFs See $1.1 Billion Inflows in First Two Days of 2026

Bitcoin exchange-traded funds (ETFs) have drawn strong inflows in 2026, with analysts pointing to a new year "clean-slate effect" driving digital asset demand. US spot Bitcoin ETFs bagged $697 million worth of inflows during the second trading day of 2026, bringing in over $1.1 billion in net positive inflows in the opening two days of the new year.

The renewed inflows are a welcome sign for Bitcoin holders, following two consecutive months of net outflows from spot Bitcoin ETFs. The funds saw $3.48 billion in outflows in November and $1.09 billion in December.

Inflows to spot Bitcoin ETFs were the primary driver of Bitcoin’s momentum in 2025, according to Standard Chartered’s global head of digital assets research, Geoff Kendrick. Looking at other crypto funds, spot Ether ETFs attracted $168 million on Monday, marking their second consecutive day of inflows. Spot Solana ETFs recorded $16.8 million in investments, clocking 20 days of successive inflows.

The renewed demand for crypto ETFs reflects a “rebalancing phase” driven by geopolitical risk and “liquidity positioning,” as fundamental market drivers remain “constructive” despite the elevated uncertainty, according to Lacie Zhang, research analyst at Bitget Wallet. The renewed ETF inflows and expanding stablecoin supply signal that “institutional buyers are absorbing supply, supporting a near-term rebound.”

Meanwhile, a report from crypto platform Matrixport highlighted the “clean-slate effect” of the new year, which allowed cryptocurrency markets to reset as $30 billion of Bitcoin and Ether futures leverage unwound since the $19 billion market crash in October. Entering 2026, positioning is far leaner, speculative excess has been flushed out, and without the weight of crowded trades, Bitcoin and other cryptocurrencies now have room to follow their natural trajectory, which may well be higher.

Still, the industry’s most successful traders by returns, tracked as “smart money” traders on Nansen, continue betting on Bitcoin’s price decline. Smart money traders were net short on Bitcoin for $108 million, with nearly $19 million in net short positions added during the past 24 hours. However, the cohort was net long on Ether price for $712 million and net long on XRP for $83 million, signaling upside expectations for these coins.

Bitcoin ETF Inflows

The strong inflows into Bitcoin ETFs are a significant development for the cryptocurrency market. The “clean-slate effect” of the new year has allowed investors to reset their positions and take a fresh look at the market. The inflows into Bitcoin ETFs are a sign of renewed investor appetite and could potentially drive the price of Bitcoin higher.

Market Analysis

The market analysis suggests that the renewed demand for crypto ETFs is driven by a “rebalancing phase” and “liquidity positioning.” The fundamental market drivers remain “constructive” despite the elevated uncertainty. The expanding stablecoin supply and renewed ETF inflows signal that institutional buyers are absorbing supply, supporting a near-term rebound.

Smart Money Traders

The smart money traders continue to bet on Bitcoin’s price decline, with net short positions of $108 million. However, they are net long on Ether price for $712 million and net long on XRP for $83 million, signaling upside expectations for these coins. This suggests that the smart money traders are taking a nuanced approach to the market, with different strategies for different cryptocurrencies.

Conclusion

The strong inflows into Bitcoin ETFs and the renewed demand for crypto ETFs are significant developments for the cryptocurrency market. The “clean-slate effect” of the new year has allowed investors to reset their positions and take a fresh look at the market. The market analysis suggests that the fundamental market drivers remain “constructive” despite the elevated uncertainty, and the expanding stablecoin supply and renewed ETF inflows signal that institutional buyers are absorbing supply, supporting a near-term rebound.