Bitcoin ETFs See Record Inflows After Trump Win

Bitcoin is experiencing a surge in demand, with its price nearing $85,000. But it’s not just the coin itself that’s attracting attention. American spot exchange-traded funds (ETFs) have seen record-breaking inflows in the past week, totaling nearly $2 billion. This wave of interest follows Donald Trump’s recent election win. Which has spurred optimism across the digital asset space.

According to data from CoinShares, investors flocked to Bitcoin-focused ETFs. Which the Securities and Exchange Commission (SEC) approved earlier this year. Managed by industry heavyweights such as Fidelity, BlackRock, and Grayscale, these ETFs allow investors to buy shares that track Bitcoin’s price directly on stock exchanges, bringing the crypto asset closer to mainstream portfolios.

$2 Billion Inflows Fuel Bitcoin’s Price Rally

The $2 billion inflow into crypto ETFs represents a strong vote of confidence from investors. CoinShares’ Monday report attributes this demand to a “supportive macro environment” and the U.S. political shift resulting from Trump’s election victory. Across all funds, including those in Europe and Asia, total assets under management (AUM) reached an all-time high of $116 billion.

Bitcoin itself has seen unprecedented price gains, with CoinGecko reporting a peak close to $85,000 on Monday morning—$11,000 higher than its previous all-time high, set just last week on Election Day. Currently trading at around $84,375, Bitcoin has surged 23% over the past seven days, propelled by investor enthusiasm for Trump’s anticipated pro-crypto policies.

Strong Demand for Ethereum ETFs

The recent election rally hasn’t just benefited Bitcoin. Ethereum, the second-largest cryptocurrency, has also seen increased interest from investors. CoinShares noted $157 million in inflows into Ethereum-focused funds last week, with U.S.-based Ethereum ETFs recording their highest inflows since launching in July. This growing demand signals broader investor interest in crypto beyond Bitcoin, as Ethereum’s decentralized applications and smart contract capabilities continue to gain traction.

Trump’s Influence on the Crypto Market

Donald Trump’s unexpected victory has been a boon for the crypto market. The former President, who previously served from 2017-2021, is a known supporter of digital assets and has promised to foster a favorable environment for Bitcoin and the broader digital asset sector. With Trump set to be inaugurated on January 20, 2025, the market is optimistic that his administration will introduce policies supportive of crypto growth.

This sentiment extends to Wall Street, where Trump was a favorite candidate among top hedge fund managers. Many placed significant bets on his win, viewing his pro-business stance as beneficial to financial markets. Now, with Trump back in office, investors are eager to capitalize on anticipated regulatory changes that could remove barriers and promote growth in the digital asset industry.

Bitcoin’s meteoric rise and record-breaking ETF inflows underscore a new chapter for crypto assets, driven by a combination of favorable market conditions and Trump’s election win. As investors continue to rally around Bitcoin and Ethereum, the crypto market’s future appears bright, signaling a potential shift in mainstream financial support for digital assets. If this trend continues, the stage may be set for an era of unprecedented growth and innovation in the crypto space.