CryptoBitcoinRecord Bitcoin ETF Inflows Surge After Trump’s Support for Digital Assets

Record Bitcoin ETF Inflows Surge After Trump’s Support for Digital Assets

U.S. exchange-traded funds (ETFs) investing in Bitcoin (BTC-USD) saw a record-breaking daily net inflow of $1.38 billion, driven by President-elect Donald Trump’s support for the digital-asset sector and his promise of favorable regulations.

BlackRock Inc.’s iShares Bitcoin Trust (IBIT) was responsible for approximately 81% of this substantial inflow, which followed a record high in trading volume for the fund. The ETF saw $1.1 billion in net subscriptions on Thursday, a historic milestone.

This surge in demand for Bitcoin, especially through the world’s largest Bitcoin fund, underscores how Trump’s commitment to positioning the U.S. as a leader in the digital-asset space is reshaping the cryptocurrency landscape. Bitcoin, which has increasingly been seen as a proxy for the “Trump trade,” hit an all-time high of $76,956 on Thursday.

Caroline Bowler, CEO of crypto exchange BTC Markets Pty, highlighted the potential for a feedback loop, where rising ETF inflows could drive Bitcoin prices higher, attracting even more investment.

The future of this rally hinges on Trump delivering on campaign promises, such as creating a strategic Bitcoin reserve and appointing regulators who support digital assets. However, some technical indicators suggest that the two-month rally, fueled by optimism around Trump’s reelection, may soon pause.

As of 6:35 a.m. on Friday in London, Bitcoin was holding steady at around $76,000. The cryptocurrency has seen an approximately 80% gain in 2024, driven partly by Federal Reserve interest rate cuts, outpacing returns from traditional assets like global stocks and gold.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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