U.S. spot Bitcoin exchange-traded funds have seen a surge in net inflows over the past two trading sessions, totaling over $1 billion. This increase in investment comes after President Donald Trump announced a trade deal with an ASEAN member state, easing macroeconomic concerns in the market.
On July 2, inflows into Bitcoin ETFs reached $407.78 million, followed by $601.94 million on July 3, marking the highest single-day inflow since May 23. Fidelity’s FBTC led the way on Thursday with $237.13 million in inflows, followed closely by BlackRock’s IBIT with $224.53 million. ARK 21Shares’ ARKB saw $114.25 million in inflows, while Bitwise’s BITB, Grayscale’s GBTC, and VanEck’s HODL collectively drew $26.03 million.
The positive investor sentiment can be attributed to the optimism surrounding Trump’s trade pact with Vietnam, which aims to rebalance trade by imposing tariffs on Vietnamese imports and transshipped goods while eliminating tariffs on U.S. exports to Vietnam. This agreement has helped alleviate broader macroeconomic uncertainty and boost risk assets across markets.
Furthermore, Trump’s pressure on Fed Chair Jerome Powell to lower interest rates and his hints at appointing a successor who would support aggressive rate cuts have impacted the U.S. dollar. The declining dollar has led investors to seek alternative assets, such as Bitcoin, resulting in the sharp rise in ETF inflows.
Looking ahead, the influx of institutional capital into Bitcoin ETFs could indicate a strong July for Bitcoin price action, challenging its historical underperformance in Q3. Analysts have set short-term targets between $117,000-$135,000, with long-term projections reaching as high as $200,000 by the end of the year.
As of the time of writing, Bitcoin (BTC) was priced at $109,044, showing a slight decrease of around 1% over the past day. It is important to note that this article does not provide investment advice and is for educational purposes only.