December 30 witnessed a substantial inflow into U.S. cryptocurrency exchange-traded funds (ETFs), with net capital entering those products totaling approximately $443 million. This surge coincided with significant new ETF filings by major issuers Bitwise and Grayscale, which targeted digital assets connected to artificial intelligence (AI) and decentralized finance (DeFi), projecting launches in 2026.
Bitcoin ETFs Halt Prolonged Outflows
For the first time in over a week, Bitcoin-focused ETFs reversed a persistent net outflow streak, accumulating $355 million in net inflows on the reporting day. Data tracking by SoSoValue highlights this notable turnaround following a seven-day period where Bitcoin ETFs experienced cumulative withdrawals totaling about $497 million. These previous outflows were largely attributed to investor activities involving year-end tax-loss harvesting and portfolio adjustments.
Leading the inflows was BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT), which attracted $143.8 million. This was closely followed by ARK 21Shares' ARKB fund with $109.6 million, and Fidelity’s FBTC with $78.6 million. Bryan Courchesne, CEO of DAIM, commented that this resurgence in inflows signals a meaningful recovery from recent risk-off tendencies. He emphasized that institutional demand for Bitcoin remains robust despite earlier market drawdowns.
Ethereum and Other Altcoins Contribute to Positive Momentum
Complementing Bitcoin's rebound, Ethereum spot ETFs also registered positive net flows after experiencing more than $102 million in aggregate outflows over the previous week. Specifically, Ethereum ETFs drew $67.84 million on December 30, marking their first inflow day in recent history.
Meanwhile, XRP ETFs maintained an unbroken streak of 29 consecutive days without recording any outflows since their market introduction in November. On the reporting day, these ETFs welcomed an additional $15.55 million in net inflows. Collectively, XRP-related ETF products have now surpassed $1 billion in cumulative net capital inflows, underscoring sustained investor interest.
Solana ETFs also featured inflows of $5.21 million, reinforcing their appeal among growth-oriented institutional investors seeking exposure beyond the leading cryptocurrencies. This continuity of inflows indicates that Solana ETFs remain favored destinations for capital looking for higher potential returns within the crypto ETF universe.
Bitwise Files For Eleven New ETFs Targeting AI and DeFi Tokens
In a bid to expand product offerings, Bitwise submitted applications to the Securities and Exchange Commission (SEC) for eleven novel cryptocurrency ETFs. The proposed funds would provide investors access to a range of tokens associated with artificial intelligence and decentralized finance ecosystems poised for growth.
The filings specify strategy-based ETFs that would track tokens including Aave (AAVE), Ethena (ENA), Hyperliquid (HYPE), Bittensor (TAO), Tron (TRX), and Uniswap (UNI). Additional filings encompass tokens such as NEAR Protocol (NEAR), Starknet (STRK), Sui (SUI), CantonChain (CC), and Zcash (ZEC).
Each fund anticipates investing up to 60% of its assets directly in the underlying cryptocurrency tokens, with remaining allocations deployed in exchange-traded products or derivatives like futures contracts and swaps. Bitwise has previously pioneered by launching the first U.S. spot Solana ETF in October, followed by spot ETFs for XRP and Dogecoin (DOGE) in the subsequent month.
Grayscale Moves to Convert Bittensor Trust into An ETF
Similarly, Grayscale registered a statement with the SEC to transition its Bittensor Trust into an exchange-traded fund. This move, if approved, would establish the first U.S. spot ETF directly exposing investors to the Bittensor token. The proposed Grayscale Bittensor ETF is set to trade on the NYSE Arca under the ticker symbol GTAO.
Custodians for the planned ETF will include Coinbase Custody Trust Company and BitGo Trust Company, ensuring established institutional support and asset security.
Outlook and Industry Commentary
Matt Hougan, Chief Investment Officer at Bitwise, forecasts that Bitcoin may diverge from its traditional four-year price cycles, potentially reaching new all-time highs in 2026. He attributes this potential to declining interest rates and increased adoption by institutional investors.
The emergence of new ETF products focused on AI and DeFi tokens further illustrates a trend of institutional capital diversifying beyond Bitcoin and Ethereum. Such diversification aligns with growing regulatory certainty anticipated under the current administration, enabling investors to explore higher-growth frameworks within crypto markets.
Overall, the influx of capital into crypto ETFs at the close of the year, paired with an array of innovative fund filings, suggests continued confidence among institutional investors in both established cryptocurrencies and emerging digital asset categories.