Bitcoin ETFs Gain Traction as Market Confidence Grows Following Trump’s Re-election
Bitcoin ETF – U.S. spot Bitcoin exchange-traded funds (ETFs) have hit a significant milestone, surpassing $30 billion in cumulative total net inflows for the first time since their launch in January. This surge comes as market sentiment remains strong, driven by the re-election of former President Donald Trump and the ongoing bullish trend in cryptocurrency markets.
Bitcoin ETFs See Record Net Inflows
As of Thursday, the 12 Bitcoin ETFs collectively reported a daily net inflow of $1 billion, pushing their total inflow to $30.35 billion. This remarkable achievement comes amidst a broader rise in Bitcoin’s price, which is currently inching closer to the much-anticipated $100,000 price level. The ETFs themselves have seen a substantial increase in trading volume, reflecting heightened interest from institutional and retail investors alike.
According to data from SoSoValue, the total net asset value (NAV) of these Bitcoin ETFs surpassed the $100 billion milestone on Wednesday, a key indicator of the growing appetite for digital assets. The trend suggests that investors are increasingly confident in the potential of Bitcoin to continue its rally into 2025.
Leading Bitcoin ETF Inflows: BlackRock and Fidelity
Among the leaders in ETF inflows, BlackRock’s IBIT fund led the charge, drawing in $608.41 million. This was followed by Fidelity’s FBTC, which attracted $300.95 million. Other notable players included Bitwise’s spot Bitcoin fund, which saw $68 million in net inflows, and ARK and 21Shares’ ARKB, which recorded $17 million.
Meanwhile, traditional asset management firms like Grayscale and VanEck also saw positive inflows into their Bitcoin ETFs. Grayscale’s Mini Bitcoin Trust (GBTC) was among the only funds with negative flows on Thursday, recording $7.8 million in net outflows. Despite this, Grayscale’s total trading volume remained strong, demonstrating investor interest in Bitcoin-related products across various platforms.
Bitcoin Price Reaches New Heights
As the bullish sentiment continues, Bitcoin’s price has surged to new all-time highs, trading at $99,320 at the time of writing. The cryptocurrency has gained an impressive 2% over the past 24 hours, putting it on track to potentially hit the coveted $100,000 mark soon. Bitcoin’s rise is helping fuel demand for Bitcoin ETFs, which offer investors a way to gain exposure to the cryptocurrency without having to directly own the underlying asset.
Ethereum ETFs Struggling with Outflows
While Bitcoin ETFs are experiencing record inflows, Ethereum ETFs in the U.S. are facing a different trend. On Thursday, spot Ethereum ETFs saw $9.05 million in net outflows, extending a streak of negative flows to six days. Despite Ethereum’s strong fundamentals, including recent network upgrades and growing DeFi adoption, the spot Ethereum ETFs are currently experiencing reduced investor interest compared to their Bitcoin counterparts.
The nine Ethereum ETFs recorded a total trading volume of $839.64 million on Thursday, signaling continued activity but with a growing sense of caution from investors. This divergence in inflows between Bitcoin and Ethereum could suggest a shift in market preferences as investors increasingly favor Bitcoin as the leading cryptocurrency for institutional investment.
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