‘January effect’ hits as Bitcoin and Ethereum ETFs see $645mln inflows

The “January Effect” has officially arrived for digital assets.

After a bruising end to 2025, marked by over $6 billion in combined outflows across November and December, institutional appetite for Bitcoin and Ether returned with a new spark on the first trading day of 2026.

Data from Farside Investors revealed that US-based Spot Bitcoin and Ethereum ETFs together captured a staggering $645.8 million in net inflows on the 2nd of January.

Bitcoin ETF and Ethereum ETF analysis

As of the 2nd of January, in Bitcoin, it was BlackRock’s IBIT that saw the maximum inflows, whereas in Ethereum’s case, it was Grayscale’s ETHE that saw maximum inflows. 

If looked carefully, U.S.-listed Bitcoin ETFs posted their largest net inflow in 35 trading days since the 11th of November, when the eleven U.S.-based ETFs collectively saw $524 million in a single day.

Meanwhile, Spot Ethereum [ETH] ETFs saw their largest single-day inflow in 15 trading days, the largest day since the 9th of December, when $177.7 million was recorded.

In the Bitcoin [BTC] camp, BlackRock’s IBIT remained the undisputed heavyweight champion, absorbing $287.4 million of the total $471.3 million inflow.

Whereas Ethereum’s story took a more nuanced turn.

While BlackRock’s ETHA remains a favorite,  the 2nd of January belonged to Grayscale’s ETHE, which led the pack for Ether inflows with $53.7 million.

Price actions of the assets

Over the last 30 days, Bitcoin and Ether prices have remained stagnant, down 1.56% and 1.39%, respectively.

This caution is a direct hangover from October 2025, which saw the largest single-day liquidation event on record.

During that period, a massive unwind of leveraged derivatives positions sent shockwaves through the market, wiping out nearly $20 billion in value.

However, the tide appears to be turning.

At press time, Bitcoin was trading at $91,337.49, up 1.87% in the last 24 hours.

On the other hand, Ethereum reclaimed the $3,140.08 level, posting a 1.51% gain as per CoinMarketCap.

2026: A new bull cycle or a false start?

But now the million-dollar question for investors is whether this day-one surge actually signals a 2026 bull run.

If institutions keep accumulating at this pace, many expect new All-Time Highs (ATHs) for both BTC and ETH to be just around the corner.

However, nothing is certain yet.

While all this is happening, Ripple’s XRP was demonstrating a unique resilience characterized by intensified institutional adoption.

Final Thoughts

• The October crash created deep caution, but January’s rebound hints at recovery, showing that the worst structural damage may be behind the market.
• Despite flat prices, institutional demand is accelerating, hinting at a disconnect that could soon resolve with upward momentum.