US Bitcoin ETFs to See Record Monthly Inflows – Investment News
A group of twelve US Bitcoin exchange-traded funds is about to hit a record monthly net inflow, thanks to the digital asset’s significant rise towards $100,000 following President-elect Donald Trump’s interest in crypto.
In November alone, these ETFs from issuers like BlackRock Inc. and Fidelity Investments have attracted $6.2 billion, as per data compiled by Bloomberg. This surpasses the previous peak of $6 billion in February when these products were first launched.
Just recently, Bitcoin came close to reaching $100,000 for the first time, driven by Trump’s promise to reverse the Biden administration’s tough stance on crypto and introduce more crypto-friendly regulations. Additionally, Trump has expressed support for creating a US strategic stockpile of Bitcoin.
Market analysts, such as Josh Gilbert from eToro, predict that these inflows into ETFs will continue, especially under a Trump administration that aims to make it easier for businesses and retirement funds to own Bitcoin.
While the Bitcoin rally has slowed down a bit this week, with the token hovering around $96,400, smaller coins like Cardano and Solana have been trading in narrow ranges. Bitcoin has more than doubled in value this year, outperforming global stocks and gold.
The Securities and Exchange Commission reluctantly allowed the launch of US spot-Bitcoin ETFs in January under outgoing Chair Gary Gensler, following a court ruling in 2023. The agency later approved portfolios investing in Ethereum as well.
With Gensler stepping down from the SEC, there is an expectation that a supporter of digital assets will be appointed as the agency head under Trump. This could potentially pave the way for ETFs for other tokens. Trump, who was once skeptical of the industry, changed his stance as the sector heavily invested in promoting its interests during the election campaign.
