Trump’s Win Spurs Record Inflows in Bitcoin and Ethereum ETFs
11 novembre 2024 BACK TO NEWS
U.S. investors react to Trump’s victory with record inflows into Bitcoin and Ethereum ETFs, signaling a new era of crypto support - IcoHolder.
In a week of seismic shifts for U.S. finance, Donald Trump's presidential victory triggered a historic response from investors in the cryptocurrency market, with both Bitcoin (BTC) and Ethereum (ETH) spot ETFs experiencing unprecedented inflows.
BTC ETFs Surge After Election Uncertainty Settles
Throughout election week, market uncertainty initially held U.S. investors back from heavily supporting Bitcoin ETFs, even though the previous trading week had shown strong returns. This caution led to significant outflows early in the week, with over $540 million withdrawn on Monday and an additional $116.8 million on Tuesday as market players braced for the election outcome.
But once Trump's victory became clear on Wednesday, investor sentiment flipped. A staggering $621.9 million flowed into Bitcoin ETFs that day, followed by an all-time high of $1.3738 billion on Thursday. This day became the best in the ETFs’ 10-month history, with Friday adding $293.4 million, totaling an approximate $2.3 billion allocation to Bitcoin ETFs since the election results were confirmed. In total, net inflows for the week reached $1.6312 billion, according to Farside data, while BTC's price surged, rising from under $67,000 on Tuesday to nearly $80,000 by the week's end.
ETH ETFs Follow with Strong Inflows
Ethereum ETFs, although secondary to Bitcoin in terms of investment volume, also saw increased investor interest. Initially recording a $63.2 million outflow on Monday, Ethereum ETFs remained steady on Tuesday but saw positive inflows for the rest of the week. Wednesday’s net inflows reached $52.3 million, with Thursday and Friday seeing $79.7 million and $85.9 million respectively, resulting in a weekly total of $154.7 million. ETH also enjoyed a price boost, climbing 30% to reach $3,200 by the week's end, a peak it hadn't achieved in months.
The Impact of a Pro-Crypto President on U.S. Markets
Trump’s win, as the first openly pro-crypto president in U.S. history, marks a transformative period for digital assets. Investors’ swift move to pour capital into crypto-based ETFs signals high expectations that Trump’s administration could introduce regulatory clarity and support for cryptocurrency. The anticipated regulatory overhaul has already spurred optimism in both traditional finance and crypto markets, with many investors seeing the new administration as a pivotal step toward mainstream crypto acceptance.
With Trump’s administration on the horizon, the crypto market is bracing for further changes that could provide institutional legitimacy to digital assets and potentially cement the role of cryptocurrencies within the U.S. economy. For now, both Bitcoin and Ethereum have captured the attention of investors, achieving milestones that reflect the market's hopes for a pro-crypto future under Trump's leadership.