Bitcoin ETFs See Record $1.3B Inflows on Trump Win, Fed Rate Cuts

As a seasoned crypto investor with over a decade of experience navigating bull and bear markets, I must say that Thursday’s record-breaking net inflows into Bitcoin and Ethereum ETFs were not entirely unexpected. The surge in demand following Trump’s election win was a clear indication of the increasing mainstream adoption of digital assets.

On Thursday, there was a historic inflow of $1.38 billion into Bitcoin exchange-traded funds (ETFs) listed in the U.S., following closely after the election of Donald Trump as the U.S. president on Wednesday.

As a researcher, I’m excited to report that our BlackRock’s IBIT product has seen record-breaking net inflows exceeding $1.1 billion, making it the top performer among all products. This is a significant achievement since its launch in January. Moreover, for the first time ever, the cumulative net inflows across all our products have surpassed $25 billion. Remarkably, not a single one of our twelve ETFs experienced any net outflows during this period.

During Trump’s presidency, there was an influx of $78 million into Ether (ETH) exchange-traded funds (ETFs), driven by renewed optimism towards the decentralized finance (DeFi) sector. On Thursday, ETH saw a surge of over 10%, as investors grew confident in the asset due to expectations of pro-cryptocurrency policies and deregulation under the Trump administration.

On Friday’s Asian morning, Bitcoin trades above $76,000, marking a nearly 10% increase over the past week. Analyst predictions were accurate as the Federal Reserve reduced rates by 0.25% on Thursday. This move, which usually boosts risk assets like Bitcoin by increasing liquidity and devaluing the dollar, was in line with expectations.