- U.S. spot Bitcoin ETFs saw a 475% surge in weekly inflows, totaling $1.8 billion, driven by optimism surrounding President-elect Donald Trump’s anticipated pro-crypto policies, including a potential strategic Bitcoin reserve.
- Major players like BlackRock and Fidelity led the inflows, while Bitcoin experienced volatility but remained buoyed by hopes for a more supportive regulatory environment.
The world of cryptocurrency witnessed a dramatic shift in momentum as U.S. spot Bitcoin exchange-traded funds (ETFs) recorded a staggering 475% surge in weekly inflows. This uptick, amounting to over $1.8 billion, reflects growing investor optimism fueled by expectations of a crypto-friendly stance under President-elect Donald Trump’s administration.
A Rollercoaster Week for Bitcoin ETFs
The week beginning January 13 started on a cautious note. Two consecutive days of outflows saw nearly $494 million exit Bitcoin ETFs, driven by a risk-off sentiment in response to stronger-than-expected payroll data and rising bond yields. However, the tide quickly turned. Over the next three days, the funds attracted inflows exceeding $2.3 billion, recovering all prior losses as Bitcoin rebounded from $91,000 to over $100,000.
Driving Factors Behind the Surge
Anticipation of a pro-crypto regulatory environment has been a key driver of this renewed confidence. Rumors of Trump’s plans to establish a strategic Bitcoin reserve and an executive order prioritizing cryptocurrency have sparked enthusiasm among investors. The crypto community is hopeful that these initiatives will foster a more supportive framework for digital assets, boosting their integration into the U.S. financial ecosystem.
Leading the Charge: BlackRock, Fidelity, and Bitwise
The inflows on Friday, January 17, alone amounted to $975.6 million, with significant contributions from major players:
- BlackRock’s IBIT led the pack, attracting $375.9 million.
- Fidelity’s FBTC followed closely, securing $326.3 million.
- Bitwise’s BITB added another $208.1 million to the rally.
Other contributors included Grayscale’s Bitcoin Mini Trust, VanEck’s HODL, and WisdomTree’s BTCW, collectively reflecting a broader market shift towards institutional adoption.
Market Volatility and Future Prospects
While Bitcoin experienced notable volatility, dropping over 6% midweek to a low of $99,700, it quickly regained ground, trading at $102,502 per coin as of January 19. This recovery underscores optimism surrounding potential policy changes that could bolster Bitcoin’s legitimacy as an asset class.
The Road Ahead
As the Biden-to-Trump transition unfolds, the crypto market appears poised for a new chapter. With institutional players increasingly embracing Bitcoin ETFs and a promising regulatory outlook, the surge in inflows may signal the beginning of sustained growth for the sector.
Investors will be watching closely as policy announcements emerge, eager to see whether this optimism translates into tangible benefits for the crypto industry.
