Inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) soared by 475% last week, reaching over $1.8 billion, as investors grew increasingly optimistic about a crypto-friendly environment under President-elect Donald Trump’s administration.
Data from Farside Investors revealed that the 12 spot Bitcoin ETFs experienced a dramatic increase in inflows compared to the previous week’s $312.8 million. The surge follows expectations that Trump’s inauguration would usher in policies favorable to the cryptocurrency market.
Interestingly, the week began with two consecutive days of outflows, totaling nearly $494 million. This was attributed to a risk-off sentiment triggered by stronger-than-expected payroll data, which led to a spike in bond yields. However, by mid-week, Bitcoin ETFs reversed the trend, absorbing all outflows and attracting more than $2.3 billion in inflows as Bitcoin’s price rebounded from $91,000 to above $100,000.
The surge in investments comes as the crypto community anticipates Trump may prioritize cryptocurrencies during his presidency. The self-proclaimed “crypto-friendly” president has previously floated plans to establish a government-backed Bitcoin reserve to strengthen the U.S. economy. Rumors also suggest Trump could issue an executive order at the start of his term, designating crypto as a national priority.
On January 17, the Bitcoin ETFs recorded $975.6 million in inflows, with BlackRock’s IBIT leading the charge, attracting $375.9 million. Fidelity’s FBTC followed closely, drawing $326.3 million, while Bitwise’s BITB added $208.1 million in a single day. Other ETFs, including Grayscale’s GBTC, VanEck’s HODL, and Invesco Galaxy’s BTCO, also saw positive inflows.
The total trading volume for the 12 Bitcoin ETFs reached $5.44 billion on January 17, more than double the $2.74 billion from the previous trading day.
Bitcoin itself has faced some volatility, briefly dipping more than 6% from its intraday high of $106,300 to $99,700 on January 19, amid broader market liquidations. However, the cryptocurrency has since recovered some of its losses, buoyed by speculation surrounding Trump’s potential crypto executive order and hopes for a more favorable regulatory climate.
As of writing, Bitcoin was down 2.3% over the past day, trading at $102,502 per coin.
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