Bitcoin ETF Inflows Lose Momentum

In the wake of President Donald Trump’s inauguration, inflows into spot Bitcoin exchange-traded funds (ETFs) in the United States slowed significantly, defying the crypto community’s high expectations.

Data from SoSoValue revealed that the 12 spot Bitcoin ETFs collectively attracted $1.76 billion over the past week, marking a 10.5% decline compared to $1.96 billion the previous week. Notably, Jan. 17 saw the year’s highest single-day inflow of over $1 billion, just before Trump’s inauguration.

However, inflows began tapering off after Trump’s Jan. 20 swearing-in. On the first business day of his presidency, Bitcoin ETFs garnered $802.5 million, led by BlackRock’s IBIT, which accounted for $661.9 million. The following days saw a sharp decline, with inflows dropping to $248.65 million and $188.65 million, respectively.

Rebound and Key Players

The downward trend reversed slightly on Friday, Jan. 24, as Bitcoin ETFs recorded a $517.67 million inflow. Fidelity’s FBTC led the day, attracting $186.07 million, followed by ARK 21Shares’ ARKB and BlackRock’s IBIT, which brought in $168.71 million and $155.69 million, respectively.

Smaller funds like Grayscale Bitcoin Mini Trust and WisdomTree’s BTCW saw more modest inflows of $13.01 million and $2.79 million. Bitwise’s BITB, however, stood out as the only ETF to record net withdrawals, with $8.6 million leaving the fund.

The Trump Effect

The slowdown in Bitcoin ETF inflows coincided with market uncertainty following President Trump’s executive order on Jan. 23. While the order established a working group to advise on digital asset policy and assess the feasibility of a government-held stockpile of seized cryptocurrencies, it stopped short of proposing a strategic Bitcoin reserve—an initiative many in the crypto community had eagerly anticipated.

This perceived lack of commitment to Bitcoin specifically may have tempered investor enthusiasm.

Bitcoin’s Price Struggles

Bitcoin’s price momentum also shifted during this period. The cryptocurrency, which had been rallying, dropped 4.5% over the past day and 1.4% over the past week, retreating toward the critical $100,000 psychological support level.

Many analysts believe holding this level is crucial for Bitcoin to regain momentum and aim for new all-time highs. The combination of subdued ETF inflows and policy uncertainty could further influence Bitcoin’s trajectory in the coming weeks.

Outlook for Bitcoin ETFs

As the market adjusts to President Trump’s digital asset policies and fluctuating Bitcoin prices, ETF inflows may remain volatile. Investors will closely monitor future developments, including potential shifts in regulatory frameworks and market conditions, to gauge their next moves.