Bitcoin (BTC) exchange-traded funds (ETFs) in the United States yesterday recorded net inflows of more than $1.38 billion, the highest figure since they were launched on the market in January 2024.
Donald Trump’s victory in the US elections and the 25 basis point cut in interest rates, announced by the Federal Reserve of that country (Fed), promoted institutional investment in these financial instruments.
According to the data of SosoValueBlackRock’s iShares Bitcoin Trust (IBIT) had money income of more than 1.12 billion dollars.
For its part, Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) reported income of $190 million, while Grayscale’s Grayscale Bitcoin Mini Trust (BTC) had positive capital flows of more than $20 million. .
One step below appears the Ark & 21Shares ARK 21Shares Bitcoin ETF (ARKB), which had inflows of $17 million, followed by the Bitwise Bitcoin ETF (BITB), which reported inflows of $13 million.
Grayscale’s Grayscale Bitcoin Trust (GBTC), meanwhile, recorded inflows of $7 million. For their part, the ETFs of VanEck and Valkyrie companies reported income of 4 and 2 million dollars, respectively.
Likewise, it is worth noting that the four remaining funds had no inflows or outflows of money during the last day.
Since its launch on the market, the 12 bitcoin ETFs have made institutional investing easier and they already register money income of more than 25,000 million dollars.
He good performance of these financial instruments made the currency created by Satoshi Nakamoto remain above $76,000. At the time of publication of this note, its price is $76,299.
Due to its operation, ETF performance has a direct impact on the BTC price. The companies managing these instruments must buy and hold bitcoin in their treasuries to support their actions.
If there is demand for these financial products, firms must go to the market to buy more BTC. By simple law of supply and demand, that causes the price of the digital currency to rise.
For Jeff Meidirector of operations of the BTSE cryptocurrency exchange, Donald Trump’s victory in the United States presidential elections and the rate cut made by the Federal Reserve of that country (Fed) “encouraged institutions to launch into the markets of digital assets”. He further said:
“With more rate cuts on the way, the prospect of pro-crypto regulations, and continued stimulus from China, it makes sense that institutions are flocking to the Blackrock bitcoin ETF, and we expect even more to come in the coming months.” .
Jeff Mei, chief operating officer of cryptocurrency exchange BTSE.
In addition to Trump’s victory, another catalyst that boosted interest in BTC and cryptocurrencies was the cut in interest rates announced by the head of the FedJerome Powell.
When the interest rate drops, the cost of borrowing is lower, and that is why companies and Investors move their holdings towards assets considered risky such as BTC and cryptocurrencieswith the aim of obtaining greater profits.
In these contexts, it is also important to note that the yield on Treasury bonds, known to be the safest investment in the world, decreases.
