Investment into U.S. spot Bitcoin ETFs surged by 475% last week, fueled by expectations of a more crypto-friendly administration following President-elect Donald Trump's inauguration.
Sharp Increase in Bitcoin ETF Investments
According to Farside Investors, 12 spot Bitcoin ETFs accumulated over $1.8 billion in the past week, marking a 475% increase compared to the $312.8 million recorded in the prior week.
Factors Influencing the Market
The investment products began the week of Jan. 13–Jan. 17 with two consecutive days of outflows due to a risk-off sentiment triggered by stronger-than-expected payroll numbers that led to a spike in bond yields. However, over the next three days, BTC ETFs managed to absorb all of the outflows with inflows of over $2.3 billion as Bitcoin began its march back above $100k.
Future Prospects in the Cryptocurrency Market
Amidst the positive sentiment in the crypto community, the 12 BTC ETFs recorded $975.6 million in inflows on Friday, Jan. 17, led by BlackRock’s IBIT, which attracted $375.9 million. Fidelity’s FBTC followed with $326.3 million in inflows. The total trading volume for the 12 Bitcoin ETFs reached $5.44 billion on Jan. 17, significantly higher than the $2.74 billion recorded the previous trading day.
The Bitcoin ETF market continues to experience significant inflows as expectations for a crypto-friendly policy from the new U.S. administration rise. At the same time, the cryptocurrency market remains highly volatile, requiring caution from investors.
