Bitcoin ETFs in the U.S. have experienced a significant increase in net inflows following Donald Trump’s presidential win. The total inflows reached a record-breaking $1.38 billion, with BlackRock’s IBIT leading the way with over $1.1 billion in net inflows. This marks the highest level of inflows since the ETF went live in January. In total, cumulative net inflows for all Bitcoin ETF products surpassed $25 billion for the first time, indicating a strong investor interest in the cryptocurrency.
On the other hand, Ethereum ETFs also saw a boost in inflows, totaling $78 million. This surge in interest can be attributed to the optimism surrounding decentralized finance (DeFi) following Trump’s victory. Ethereum (ETH) itself experienced a more than 10% increase in value on Thursday, reflecting the positive sentiment in the market.
Bitcoin’s price has also been on the rise, surpassing $76,000 in Asian trading hours on Friday. The Federal Reserve’s decision to cut rates by 25 basis points on Thursday has further supported the upward trend in Bitcoin’s value. This move by the Fed typically benefits risk assets like Bitcoin, as it increases liquidity in the market and weakens the dollar.
Overall, the recent developments in the political landscape, coupled with the Fed’s rate cut, have created a favorable environment for Bitcoin and other cryptocurrencies. Investors are showing increased confidence in these digital assets, as evidenced by the record inflows into Bitcoin ETFs. The future outlook for cryptocurrencies remains positive, especially with the potential for pro-crypto policies and deregulation under a Trump administration. As the market continues to evolve, it will be interesting to see how these factors impact the value and adoption of cryptocurrencies in the coming months.
