Boost in Spot Bitcoin ETFs: Upholding Progress Post-Election
After Donald Trump’s win in the recent presidential elections, American investors have notably escalated their participation in spot Bitcoin exchange-traded funds (ETFs), a trend that has endured in recent times. Concurrently, Ethereum ETFs have also seen a surge, drawing close to $1 billion in investments during the same period.
Robust Growth in Bitcoin ETFs
The robust flow into the initial 12 spot Bitcoin ETFs has been astounding, setting numerous records for net inflows in their introduction year. Noteworthy is the dominance of BlackRock’s IBIT, swiftly becoming the preferred choice among investors.
Recent days have cemented a growing trend that predates the elections. On December 9, the ETFs amassed $489.1 million in net inflows, followed by $438.5 million on Tuesday, $223.1 million on Wednesday, $597.5 million on Thursday, and ending with $428.9 million on Friday. In total, net inflows reached an impressive $2.167 billion, though slightly lower than the preceding week, it still signifies a substantial investment in a short timeframe.
Primarily led by IBIT, amassing $394.1 million on Monday, $295.6 million on Tuesday, $431.6 million on Thursday, and $393 million on Friday. Notable was Wednesday, with Fidelity’s FBTC drawing in a substantial $121.9 million, as IBIT reported no net flows.
These considerable inflows have positively influenced Bitcoin’s market value, with a 3% rise over the week, edging closer to a new all-time peak.
Ethereum ETFs Benefiting from Positive Momentum
Following a sluggish start, Ethereum ETFs have displayed a strong performance in recent weeks, kicking off on November 22 and maintaining a streak of favorable inflows. In the past week, Ethereum ETFs accumulated $149.8 million on Monday, $305.7 million on Tuesday, $102 million on Wednesday, $273.7 million on Thursday, and $23.6 million on Friday, totaling $854.8 million.
Interestingly, despite the influx of funds, Ethereum’s value has seen a 2.5% weekly decline. Despite momentarily surpassing $4,000 the previous Friday, it struggled to sustain its momentum and is presently trading under $3,900 after a volatile week.
Wrap-Up
The recent upsurge in Bitcoin and Ethereum ETF investments underscore a solid confidence in these assets post the election. While Bitcoin continues its price surge amid significant inflows, Ethereum’s recent capital gains despite price setbacks indicate a complex investment landscape. This ongoing momentum indicates a keen interest in cryptocurrency as a promising investment avenue, highlighting its increasing significance in the financial domain.
