Bitcoin ETF Inflows Skyrocket 475% Before Trump’s Inauguration

In a stunning turn of events, inflows into U.S. spot Bitcoin exchange-traded funds saw a jaw-dropping surge of 475% last week. The driving force behind this massive increase? The anticipation of a more crypto-friendly administration following the upcoming inauguration of President-elect Donald Trump.

According to data from Farside Investors, the 12 spot Bitcoin ETFs experienced a whopping $1.8 billion in inflows over the past week. This marked a staggering 475% surge compared to the previous week’s inflows of $312.8 million. The crypto market was buzzing with excitement as investors eagerly awaited the change in leadership and its potential impact on digital assets.

Market Volatility and Positive Momentum

The week began with a bit of turbulence, as two consecutive days of outflows hit the ETFs, resulting in nearly $494 million exiting the funds. This was attributed to a risk-off sentiment in the crypto market sparked by stronger-than-expected payroll numbers that led to a spike in bond yields. However, the market quickly rebounded, with BTC ETFs absorbing all outflows and welcoming over $2.3 billion in inflows over the next three days.

The positive sentiment was palpable, especially as rumors swirled about President-elect Trump’s plans to establish a government strategic Bitcoin reserve and potentially designate crypto as a national priority through an executive order. This optimism fueled a surge in inflows, with the 12 BTC ETFs recording $975.6 million on Friday, Jan. 17.

Leading the charge were BlackRock’s IBIT and Fidelity’s FBTC, attracting significant inflows of $375.9 million and $326.3 million, respectively. Bitwise’s BITB also saw a notable influx of $208.1 million in a single day. Despite some ETFs like ARK and 21Shares’ ARKB not having updated data available, the overall trading volume for the 12 Bitcoin ETFs reached a remarkable $5.44 billion on Jan. 17.

Bitcoin’s Rollercoaster Ride

While the ETFs were experiencing a surge in inflows, Bitcoin itself was on a wild ride. The flagship cryptocurrency saw significant volatility, dropping over 6% from its intraday high of $106,300 to around $99,700 on Jan. 19. This led to $1.18 billion in liquidations across the broader crypto market, according to data from CoinGlass.

However, amidst the fluctuations, Bitcoin managed to claw back some of its losses, buoyed by the positive outlook surrounding Trump’s potential crypto executive order and hopes for a more supportive regulatory environment. At the time of writing, Bitcoin was trading at $102,502 per coin, down 2.3% over the past day.

The crypto world is abuzz with anticipation as investors eagerly await the unfolding of events under the new administration. Will President-elect Trump’s rumored crypto-friendly policies pave the way for a new era of digital asset growth? Only time will tell.