Inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) experienced an extraordinary 475% surge last week, driven by growing expectations that President-elect Donald Trump’s inauguration will usher in a more crypto-friendly environment.
Data from Farside Investors reveals that the 12 spot Bitcoin ETFs collectively saw over $1.8 billion in inflows during the past week, a sharp increase from the previous week’s $312.8 million. However, the week began with two days of consecutive outflows, nearly $494 million, due to a “risk-off” sentiment in the crypto market. This was triggered by stronger-than-expected U.S. payroll numbers, which led to a spike in bond yields.
In the days that followed, the Bitcoin ETFs quickly reversed the outflows, attracting more than $2.3 billion as Bitcoin’s price surged from around $91,000 back above $100,000. This turnaround was fueled by anticipation of a more supportive stance toward cryptocurrencies following Trump’s inauguration, as the crypto community hopes for favorable policies.
Trump, who has previously indicated plans to create a government strategic Bitcoin reserve to strengthen the U.S. economy, is also rumored to issue an executive order designating cryptocurrency as a national priority. These developments have boosted confidence among investors in the crypto space.
On January 17, the Bitcoin ETFs recorded significant inflows, totaling $975.6 million, with BlackRock’s IBIT ETF leading the charge with $375.9 million. Fidelity’s FBTC followed closely, attracting $326.3 million, while Bitwise’s BITB garnered $208.1 million in a single day. Other notable contributors included Grayscale Bitcoin Mini Trust ($21.8 million), Grayscale’s GBTC ($20.8 million), VanEck’s HODL ($11.9 million), Invesco Galaxy’s BTCO ($6.3 million), and WisdomTree’s BTCW ($4.5 million).
The total trading volume for the 12 Bitcoin ETFs reached $5.44 billion on January 17, nearly double the previous day’s $2.74 billion. Despite recent volatility, with Bitcoin briefly dipping over 6% to $99,700 on January 19, the broader sentiment remains positive as the market anticipates Trump’s executive order and a more crypto-friendly regulatory landscape.
At press time, Bitcoin was trading at $102,502 per coin, showing signs of recovery following the recent fluctuations.
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