Bitcoin ETFs in the US Record a Record Net Influx of $1.38 Billion After Donald Trump’s Victory, with BlackRock’s IBIT Fund Garnering Over $1.1 Billion
The Federal Reserve has reduced interest rates by 0.25%, stimulating appetite for risk assets, including Bitcoin, which crossed $76,000, up almost 10% for the week.
The enthusiasm has spread to Ethereum, which attracted $78 million in inflows to its ETFs, with ETH gaining over 10%, fueled by hopes of pro-crypto policies under Trump.
Massive Flows into Bitcoin Spot ETFs
Donald Trump’s victory in the U.S. presidential election caused a massive movement in the crypto markets, particularly towards Bitcoin ETFs. On Thursday, following the announcement of the Republican victory, Bitcoin ETFs listed in the U.S. recorded a record net influx of $1.38 billion, marking a historical turning point for these financial products.
BlackRock’s IBIT fund stood out with impressive inflows, representing over $1.1 billion alone, an absolute record even for the crypto ETF leader. This massive influx allowed the cumulative products to reach the milestone of $25 billion in total net flows for the first time. Significantly, none of the twelve ETFs showed any net outflows, highlighting sustained investor appetite for digital assets after Trump’s victory.
A Rebound Supported by Monetary Policy
Alongside this investment wave, the Federal Reserve announced a 0.25% reduction in interest rates on Thursday. This decision, expected by analysts, reinforced the momentum in risk assets by weakening the dollar and increasing liquidity in the markets. Historically, such measures stimulate appetite for Bitcoin, often seen as an alternative safe haven and decentralized asset.
On Friday morning, Bitcoin continued its ascent, trading above $76,000, recording an almost 10% increase over the past week. This surge in strength has reinforced the belief among observers that there will be pro-crypto policies under the Trump administration, increasing optimism in the market.
Enthusiasm Spreads to Ethereum and DeFi
The Trump effect was not limited to Bitcoin. Ethereum ETFs also saw significant inflows, totaling $78 million, driven by renewed confidence in the decentralized finance ecosystem. This momentum allowed ETH to rise by more than 10% on Thursday. Investors perceive Trump’s return as a potential catalyst for favorable measures towards crypto innovation and increased deregulation, which are stimulating for the entire sector.
