Bloomberg analyst Eric Balchunas compiled global ETF performance data on the X platform for 2025, showing a record-breaking net inflow of $1.49 trillion. This surge primarily flowed into US stocks, bonds, and actively managed strategies.
Meanwhile, BlackRock's Bitcoin ETF (IBIT) not only failed to expand further, but also became the only product with negative returns among the top 15 ETFs, falling 6.41% year-on-year. It's clear that global investors who dabbled in Bitcoin last year have already backed out.
Funds flock to stocks, ETFs see record net inflows.
According to US ETF market data , net inflows into US-listed ETFs reached $1.49 trillion in 2025. US stocks and investment-grade bonds accounted for the majority of orders, which the market interpreted as a direct boost to corporate profit expectations from Trump's first year in office tax cuts and regulatory easing. AI-related giants acted as rocket boosters, making "buying large US stocks" the simplest and most risk-adjusted return option for many fund management institutions. Consequently, funds shifted from hedging positions to stocks and active strategies that could participate in real economic growth.
IBIT: From Star to Burden
When the Bitcoin ETF was approved in early 2024, it was touted as a ticket for institutional investors to enter the market, but the reality turned out to be quite different a year later.
IBIT's size falls between $95 billion and $100 billion. Compared to the 65% surge in gold ETFs during the same period, IBIT fell 6.41% year-over-year, becoming the only ETF among the top 15 with a negative return. A more direct warning sign came in November and December, with net outflows exceeding $4.5 billion in a single quarter, and the Bitcoin spot price correcting 35% from its historical high. This indicates that institutions view Bitcoin as "risk capital" and will prioritize withdrawing funds starting in Q4 2025.
The dual pressures of policy and market sentiment
In its investment insights released at the end of last year, State Street pointed out that with both US stocks and gold in a bullish trend and supported by tax and regulatory advantages, investors have no reason to bear the high volatility of blockchain assets.
The "double benefit" brought by the 2024 Bitcoin halving and the approval of the ETF has already been over-consumed. Lacking a new narrative, Bitcoin can only passively follow macroeconomic trends, and DAT was merely a flash in the pan. However, on the other hand, Bitcoin has already entered the ranks of global assets, possessing a very unique nature, and its market perspective is highly likely to continue to evolve.
