Inflows into U.S. Bitcoin ETFs Surge by 475% Amid Optimism for Crypto-Friendly Administration
Inflows into U.S. spot Bitcoin exchange-traded funds surged by 475% last week, fueled by expectations of a more crypto-friendly administration following President-elect Donald Trump’s inauguration.
Recent data from Farside Investors reveals that the 12 spot Bitcoin ETFs experienced over $1.8 billion in inflows over the past week, marking a significant 475% increase compared to the previous week’s $312.8 million inflows.
Market Trends and Sentiment
The week began with two consecutive days of outflows amounting to nearly $494 million as a result of a risk-off sentiment in the crypto market. This was triggered by stronger-than-expected payroll numbers leading to a spike in bond yields. However, over the following three days, the BTC ETFs managed to absorb all outflows with an inflow of over $2.3 billion as Bitcoin’s price surged back above $100k.
The positive sentiment in the crypto community is largely attributed to expectations of a more crypto-friendly administration with President Trump’s plans to establish a government strategic Bitcoin reserve to boost the U.S. economy. Rumors also suggest that an executive order designating crypto as a national priority may be imminent.
Notable Inflows and Trading Volume
On Friday, Jan. 17, the 12 BTC ETFs recorded $975.6 million in inflows, with BlackRock’s IBIT attracting $375.9 million, followed by Fidelity’s FBTC with $326.3 million. Bitwise’s BITB also saw significant inflows of $208.1 million. The total trading volume for the 12 Bitcoin ETFs reached $5.44 billion on Jan. 17.
Other BTC ETFs that recorded inflows include Grayscale Bitcoin Mini Trust with $21.8 million, Grayscale’s GBTC with $20.8 million, VanEck’s HODL with $11.9 million, Invesco Galaxy’s BTCO with $6.3 million, and WisdomTree’s BTCW with $4.5 million.
Market Volatility and Recovery
Despite Bitcoin experiencing notable volatility and dropping over 6% from its intraday high to around $99,700 on Jan. 19, the overall market sentiment remains positive. The broader crypto market faced $1.18 billion in liquidations, but Bitcoin has since recovered some of its losses driven by optimism surrounding potential regulatory support under the new administration.
At the time of writing, Bitcoin is trading at $102,502 per coin, down 2.3% over the past day. The market continues to monitor developments in the regulatory landscape and the impact of the new administration on the crypto industry.