U.S. spot Bitcoin exchange-traded funds (ETFs) registered their largest daily inflow since October 7, 2024, with $697.2 million recorded on Monday, January 5, 2026, according to data from Farside Investors. This surge contributed to a strong start for the new year, with approximately $1.2 billion in net inflows across the first two trading days of 2026.
The renewed institutional demand coincides with Bitcoin's price rising nearly 7% from around $87,000 at the start of the year to slightly under $94,000. This marks a significant reversal from the previous two months, where spot Bitcoin ETFs experienced net outflows of $3.48 billion in November and $1.09 billion in December 2025, according to Sosovalue data.
Analysts point to a "clean-slate effect" at the beginning of 2026 as a key driver. Matrixport highlighted that roughly $30 billion in Bitcoin and Ether futures leverage has unwound since the market crash in early October 2025, leaving positioning "far leaner" and speculative excess "flushed out." This reset has created room for assets to follow their "natural trajectory, which may well be higher."
The inflows are seen as a critical indicator. Geoff Kendrick, Standard Chartered's global head of digital assets research, noted that inflows to spot Bitcoin ETFs were the primary driver of Bitcoin’s momentum in 2025. Historically, extended periods of ETF outflows have aligned with local market bottoms, based on Glassnode's 30-day moving average data, with examples including August 2024 and April 2025.
The positive sentiment extends beyond Bitcoin. Spot Ether (ETH) ETFs attracted $168 million on Monday, marking a second consecutive day of inflows. Spot Solana (SOL) ETFs recorded $16.8 million, clocking an impressive 20 days of successive inflows.
Lacie Zhang, a research analyst at Bitget Wallet, described the renewed demand as part of a "rebalancing phase" driven by geopolitical risk and liquidity positioning. She suggested that the inflows, combined with an expanding stablecoin supply, indicate "institutional buyers are absorbing supply, supporting a near-term rebound." Zhang projected Bitcoin could push toward $105,000, while Ethereum might test $3,600.
Despite the bullish inflows, data from Nansen shows "smart money" traders tracked on the platform maintained a net short position on Bitcoin of $108 million, adding nearly $19 million in net shorts over 24 hours. However, the same cohort was net long on Ether for $712 million and net long on XRP for $83 million, signaling divergent expectations among sophisticated traders.
