The “January Effect” has officially arrived for digital assets.
After a painful end to 2025 marked by combined outflows of more than $6 billion in November and December, institutional interest in Bitcoin and Ether returned with a new spark on the first trading day of 2026.
Data from Farside Investors showed that the US-based Spot Bitcoin and Ethereum ETFs together generated a staggering net inflow of $645.8 million on January 2.
Bitcoin ETF and Ethereum ETF Analysis
As of January 2, in Bitcoin it was BlackRock’s IBIT that saw the maximum inflows, while in the case of Ethereum it was Grayscale’s ETHE that saw the maximum inflows.
If you look closely, US-listed Bitcoin ETFs recorded their largest net inflows in 35 trading days since November 11, when the eleven US-based ETFs collectively traded $524 million in one day.
In the meantime, discover Ethereum [ETH] ETFs saw their biggest single-day inflows in 15 trading days, the biggest day since December 9, when $177.7 million was recorded.
In Bitcoin [BTC] camp, BlackRock’s IBIT stayed the undisputed heavyweight champion, who absorbed $287.4 million of the total inflow of $471.3 million.
While Ethereum’s story took a more nuanced turn.
While BlackRock’s ETHA remains a favorite, January 2 belonged to Grayscale’s ETHE, which led the way for Ether inflow with $53.7 million.
Price actions of the assets
Over the past 30 days, Bitcoin and Ether prices have remained stable, up 1.56% and 1.39% respectively.
This warning is a direct hangover from October 2025, when the largest single-day liquidation event ever occurred.
During that period, a massive unwinding of leveraged derivatives positions sent shockwaves through the market, wiping out nearly $20 billion in value.
However, the tide seems to be turning.
At the time of writing, Bitcoin was trade at $91,337.49, up 1.87% in the past 24 hours.
On the other hand, Ethereum recovered the $3,140.08 level, with a gain of 1.51% according to CoinMarketCap.
2026: A new bull cycle or a false start?
But now the million-dollar question for investors is whether this first-day surge actually signals a bull run in 2026.
If institutions continue to accumulate at this pace, many expect new All-Time Highs (ATHs) for both BTC and ETH to be imminent.
However, nothing is certain yet.
While all this was happening, Ripple’s XRP demonstrated a unique resilience marked by intensified institutional adoption.
Final thoughts
- October’s crash prompted caution, but January’s recovery signals a recovery, showing that the worst of the structural damage may be behind the market.
- Despite flat prices, institutional demand is accelerating, signaling a gap that could quickly resolve with upward momentum.