The Bitcoin exchange-traded fund (ETF) has set new records as the most successful ETF in U.S. history, amassing approximately $10 billion in inflows since the November 5 elections.
A Bloomberg report attributed this historic achievement to President-elect Donald Trump’s crypto-friendly stance, which has ignited optimism within the cryptocurrency industry. Investors anticipate significant growth under Trump’s proposed regulatory changes, fueling demand for Bitcoin spot ETFs.
Source: Bloomberg
Massive institutional investments in Bitcoin ETFs
Several major funds, including BlackRock and Fidelity, have contributed significantly to the surge in Bitcoin ETF investments. According to Bloomberg, these funds accounted for $9.9 billion in net assets, pushing the total ETF market value to $113 billion. Among the top-performing funds, IBIT leads with a market cap of $55.87 billion, followed by GBTC with $49.80 billion and FBTC with $19.75 billion.
An OKG Research report further highlights the growing institutional interest in Bitcoin ETFs. The report revealed that ETFs now hold about 55% of the current Bitcoin circulation. This trend has developed rapidly since Bitcoin ETFs launched in January, driven by institutional investors channeling large amounts of capital into the funds.
Pro-Crypto policies under Trump administration
Trump’s recent moves to support the cryptocurrency industry have bolstered investor confidence. Last week, the President-elect selected a prominent advocate for digital assets to lead the U.S. Securities and Exchange Commission (SEC). Additionally, Trump appointed a White House official who specialized in cryptocurrency and artificial intelligence policy.
Trump has pledged to replace existing regulatory skepticism with more favorable digital asset policies. He has also suggested establishing a national Bitcoin reserve, signaling a dramatic shift in his previous position on crypto. Initially a critic of digital currencies, Trump’s perspective evolved during his campaign, where he received significant backing from the crypto industry.
Bitcoin and Ethereum surge amid bullish sentiment
Bitcoin’s price has soared following Trump’s election victory, hitting a historic milestone of $103,900 on December 5. This marks the first time Bitcoin has crossed into six-figure territory. Analysts, including CryptoQuant CEO Ki Young Ju, predict further growth, with Bitcoin potentially reaching $112,000 by the end of the year.
Ethereum has also seen substantial gains, climbing over 28% in the past month. U.S. spot Ether ETFs have reported significant inflows during the same period. BlackRock’s ETHA ETF has attracted nearly $2 billion since its introduction, reflecting the rising demand for Ethereum investments.
Prominent industry figures have weighed in on these developments. Ripple CEO Brad Garlinghouse described Bitcoin ETFs as the most successful in U.S. history, emphasizing their rapid asset accumulation. Despite skepticism from Wall Street leaders like Jamie Dimon, crypto ETFs have gained traction across major financial institutions. Many skeptics are reportedly profiting from transaction fees associated with these ETFs.
Bitcoin ETFs have become a pivotal force in the financial market, driven by institutional backing and favorable policy changes. As the crypto market continues its historic bull run, investor interest in ETFs remains at an all-time high.