Chiara Bianchi
BlackRock’s iShares Bitcoin Trust (IBIT) hit a milestone yesterday, achieving record-breaking net inflows of $1.12 billion, surpassing its previous high of $872 million set on October 30. This comes a day after IBIT reported an unprecedented $4 billion in single-day trading volume, underscoring investor confidence in Bitcoin’s outlook and BlackRock’s robust reputation.
Rachael Lucas, a crypto analyst at BTCMarkets, highlighted the surge as a sign of investor confidence, driven by BlackRock’s reliability, Bitcoin’s price rally, and current market dynamics. She noted that “institutional trust, FOMO, and delayed capital flows after Bitcoin’s price gains” were major factors behind the impressive inflows.
Trump’s Election Win and Fed Rate Cut Add Momentum
Market sentiment also received a boost from Donald Trump’s recent U.S. presidential election victory, which has spurred both equities and crypto. As the pro-crypto candidate’s win was announced, Bitcoin soared to break its previous all-time high, reflecting an optimistic outlook on potential regulatory shifts favorable to crypto markets.
Further accelerating this trend, the Federal Open Market Committee (FOMC) announced a 25-basis-point rate cut on Thursday, setting the rate between 4.50% and 4.75%. Jeff Mei, COO at BTSE crypto exchange, observed that “Trump’s win, combined with the Fed rate cut, prompted institutional investors to seize the opportunity in crypto markets.” Mei noted that with further rate cuts expected, alongside the prospect of favorable crypto regulations, institutions are likely to continue turning to BlackRock’s Bitcoin ETF.
Spot Bitcoin ETF Reach New Net Inflows Record Across 12 U.S. Funds
Thanks to IBIT’s inflows, the total net inflows across 12 U.S. spot bitcoin ETFs reached a new record, with $1.38 billion in daily inflows. Total trading volume for these funds topped $2.76 billion, reflecting unprecedented levels of activity. Fidelity’s FBTC recorded $190.92 million in net inflows, while Grayscale’s mini trust added $20.38 million, per SoSoValue data. Other funds from Ark & 21Shares, Bitwise, VanEck, and Valkyrie reported substantial gains, bringing cumulative net inflows for these bitcoin ETFs to $25.49 billion.
Ether ETFs Also Gain Momentum Following Election
Spot Ether ETFs also saw a notable rise in trade volume and net inflows following Trump’s election. The nine funds collectively reported $79.74 million in net inflows on Thursday, with total trading volume reaching $466.39 million, well above the typical daily range of $100-200 million.
This influx of capital into both Bitcoin and Ether ETFs highlights an increasing demand for crypto assets as institutional interest intensifies amid changing market and regulatory expectations.
