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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