Spot bitcoin exchange-traded funds (ETFs) operating in the United States achieved a net inflow of $621 million yesterday, a flow that catapulted the price of the digital currency to a new all-time high.
The electoral victory of Donald Trump in the recent US elections, and his declared support for the cryptocurrency industry, has been one of the determining factors behind this notable performance.
This event aligns with the president-elect’s promise to make the United States a nerve center for bitcoin and cryptocurrencies.
Among the 12 bitcoin ETFs, the one that led the entries was the Fidelity Wise Origin Bitcoin Fund (FBTC), managed by Fidelity, with a capital of $308 million.
Other ETFs also saw positive flows, such as Ark Invest’s ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), and Grayscale Bitcoin Mini Trust ETF (BTC), each recording inflows exceeding 100 million. dollars, according to Soso Value dataas can be seen in the following graph.
For its part, BlackRock’s iShares Bitcoin Trust (IBIT) recorded net outflows of more than 69 million dollars. However, last week, IBIT recorded $2.1 billion in net inflows, the fund’s second-largest weekly inflow to date.
Yesterday, in just the first 20 minutes of the stock markets opening, IBIT recorded $1 billion in trading volumeCriptoNoticias reported.
That day ended for IBIT, the largest bitcoin ETF in the world, with its highest daily volume in history with 4.1 billion dollars tradedas can be seen in the following graph.
«To put it in context, it is a greater volume than what stocks like Berkshire, Netflix or Visa registered today. “It was also up 10%, its second best day since its launch,” exposed Bloomberg Intelligence ETF specialist Eric Balchunas.
Likewise, Balchunas mentioned that bitcoin ETFs as a whole recorded their best day since their first days of launch, with a profit of 6,000 million dollars in a single dayas seen in the following graph.
“It was a spectacular day for an emerging category that never ceases to surprise,” said Balchunas.
This massive increase in accumulated inflows into the funds of bitcoin has raised the total figure to 24.1 billion dollarsfurther consolidating the bullish sentiment in the market.
Trump’s promises
One of the most anticipated advances of the Trump administration is the possibility of passing the Bitcoin Law, James Butterfill exposeshead of research at the company CoinShares.
This proposal would establish bitcoin as a strategic reserve asset, with the US government acquiring up to 5% of the total bitcoin supply, it says. “Such a measure would place bitcoin in a role similar to that of gold, giving it a recognized position within the national reserve and signaling a historical level of legitimacy,” explains the analyst.
If implemented, the Bitcoin Law could generate considerable institutional and government interest in bitcoin, potentially accelerating its growth and taking its value to new heights.
Bitcoin hits new all-time high
In addition to the expectations generated by Trump’s victory, the strong performance of ETFs drove the price of bitcoin to a new all-time high, exceeding $76,000.
At the moment, the digital currency stands at $74,700as seen in the graph of TradingView. A level reached in part thanks to the impact of spot ETFs.
The good performance of ETFs is bullish for the price of bitcoin due to the operation of these funds, which are backed by the underlying asset. Spot ETF management companies must purchase and hold bitcoin in their treasuries to back their shares.
This process of acquiring bitcoin to back spot ETFs creates direct and tangible demand in the market. This, in turn, reduces the amount of bitcoin available on the open market, which may lead to an increase in price due to limited supply.
A second catalyst for this bullish move has been the Federal Reserve (Fed), which is expected to announce further interest rate cuts.
The Fed already lowered rates in September, its first reduction in four years, placing them at 5.0%. These types of monetary policies favor assets like bitcoin, since the drop in Treasury bond yields usually tips the balance toward volatile assets.
Ethereum ETFs Shine Too
However, bitcoin was not the only digital asset to benefit from this dynamic. ETFs based on ether (ETH), Ethereum cryptocurrency, They also received net inflows of $52 millionled by the Grayscale Ethereum Mini Trust ETF (ETH) and the Fidelity Ethereum Fund (FETH), as can be seen in the following SoSoValue graph.
Although these figures are lower than those of bitcoin, mark a positive trend in the cryptocurrency market as a wholewhich now seems more optimistic and strengthened than ever.
With these developments underway, the market expects the price of bitcoin to continue rising, as new capital continues to flow in and institutional support grows.