CryptoBitcoinBitcoin ETFs See Massive Inflows Amid Optimism Over Trump’s Crypto Policies

Bitcoin ETFs See Massive Inflows Amid Optimism Over Trump’s Crypto Policies

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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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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