Bitcoin exchange-traded funds (ETFs) have seen an impressive $1.3 billion in net inflows, a trend ignited by Republican Donald Trump’s recent win in the U.S. presidential election.
The inflow surge was especially notable on Thursday, reflecting a renewed optimism among investors anticipating pro-cryptocurrency policies.
Leading this trend was BlackRock’s iShares Bitcoin Trust (IBIT), which alone garnered over $1.1 billion in net inflows—its highest amount since launching in January.
This influx helped achieve a historic milestone, pushing total net inflows across all Bitcoin products to exceed $25 billion for the first time, with all twelve ETFs reporting no outflows. Alongside Bitcoin’s success, Ether (ETH) ETFs also experienced a significant boost, recording $78 million in net inflows fueled by a revived bullish sentiment in the decentralized finance (DeFi) sector.
Despite the substantial inflows, trading activity for IBIT has surged significantly, with recent trading volume hitting $4.1 billion—outpacing some of the largest stocks in the market, such as Berkshire Hathaway, Netflix, and Visa. According to Bloomberg ETF analyst Eric Balchunas, while high trading volume indicates market activity, it doesn’t necessarily mean positive inflows, as it includes both buying and selling transactions.
BTC trades above $76,000 in Asian morning hours Friday, up nearly 10% over the past week. In line with analyst expectations, the Federal Reserve cut rates by 25 basis points on Thursday in a move that typically supports risk assets like bitcoin by increasing liquidity and weakening the dollar.
The optimism surrounding Trump’s presidency has revitalized investor confidence, leading to a more than 10% surge in ETH prices just on Thursday. As of Friday morning in Asia, Bitcoin was trading above $76,000, reflecting nearly a 10% increase over the past week.
This price movement aligns with analyst forecasts, which suggested that the Federal Reserve’s decision to cut interest rates by 25 basis points would support risk assets like Bitcoin.
Lower interest rates generally improve market liquidity and reduce the dollar’s value, making cryptocurrencies more appealing to investors. However, the trading environment presents a mixed scenario.
