Inflows into US exchange-traded Bitcoin funds surged 475% last week, fueled by expectations of a more crypto-friendly government following the inauguration of newly elected President Donald Trump.
According to facts from Farside Investors, the 12 spot Bitcoin ETFs recorded inflows of more than $1.8 billion last week, a 475% increase compared to the $312.8 million inflows recorded the week before.
It is striking that the investment products started in the week of January 13 to January. This happened on September 17 with two consecutive days of outflows, during which nearly $494 million disappeared from the funds. This was attributed to a risk-off sentiment in the crypto market, driven by stronger-than-expected payroll numbers that triggered a spike in bond yields.
Over the next three days, the BTC ETFs managed to absorb all the outflows with inflows of over $2.3 billion as Bitcoin began its comeback from around $91,000 back to over $100,000. This came as the crypto community anticipated a more crypto-friendly government following Trump’s inauguration into the Oval Office.
The self-proclaimed crypto-friendly president previously announced plans to establish a strategic government Bitcoin reserve to strengthen the US economy. Additionally, rumors are circulating that the new president could begin his term with an executive order declaring crypto a national priority.
Amid the positive sentiment in the crypto community, the 12 BTC ETFs recorded inflows of $975.6 million on Friday, January 17, led by BlackRock’s IBIT, which attracted $375.9 million, followed closely by Fidelity’s FBTC with inflows of $326 .3 million.
Bitwise’s BITB also added to the positive momentum, attracting $208.1 million from investors in a single day. While data for ARK and 21Shares’ ARKB had not been updated at the time of reporting, the remaining BTC ETFs that recorded inflows are as follows:
- Grayscale Bitcoin Mini Trust: $21.8 million.
- Grayscale’s GBTC: $20.8 million.
- VanEck’s HODL: $11.9 million.
- Invesco Galaxy’s BTCO: $6.3 million.
- WisdomTree VAT: $4.5 million.
Total trading volume for the 12 Bitcoin ETFs reached $5.44 billion on January 17, significantly higher than the $2.74 billion recorded the previous trading day.
Meanwhile, Bitcoin, the flagship cryptocurrency, experienced notable volatility, falling more than 6% from its intraday high of $106,300 to around $99,700 on January 19, while the broader crypto market saw $1.18 billion in liquidations, according to data from CoinGlass. However, at the time of writing, Bitcoin had recovered some of its losses, driven by optimism surrounding Trump’s expected crypto executive order and hopes for a more supportive regulatory environment.
Bitcoin (BTC) remained down 2.3% over the day, trading at $102,502 per coin at the time of writing.
