A group of U.S. Bitcoin exchange-traded funds (ETFs) is on track to set a new record for monthly net inflows, with $6.2 billion in investments so far this November, according to data compiled by Bloomberg. This surge is being fueled by Bitcoin’s historic price surge toward $100,000, driven by President-elect Donald Trump’s pro-crypto policies and promises to ease regulatory pressures on the digital asset.
ETFs from major issuers like BlackRock Inc. and Fidelity Investments have seen significant investor interest, surpassing the previous monthly record of $6 billion set in February, which was driven by enthusiasm surrounding the launch of these investment products earlier this year. Bitcoin’s rapid ascent has been a key catalyst, with the cryptocurrency coming within $300 of the $100,000 milestone last week. This surge was largely attributed to Trump’s pledge to reverse the Biden administration’s crackdown on crypto and install more crypto-friendly regulators. Trump has also advocated for creating a U.S. strategic stockpile of Bitcoin, further boosting market sentiment.
“We will continue to see inflows into ETFs, especially under a Trump administration, where it’s expected to be easier for businesses and retirement funds to own this asset,” said Josh Gilbert, market analyst at eToro.
While Bitcoin’s rally moderated slightly this week, leaving the digital asset priced at around $96,400 as of Friday morning in London, the cryptocurrency has still more than doubled in value this year, outpacing traditional assets like global stocks and gold. Other smaller coins, including Cardano and Solana, traded within tight ranges, but Bitcoin’s dominance remains strong.
The approval of U.S. spot-Bitcoin ETFs earlier this year marked a major milestone for the industry. The Securities and Exchange Commission (SEC), under outgoing Chair Gary Gensler, had been hesitant to approve such products until a court ruling in 2023 forced the agency’s hand. Following the launch of Bitcoin ETFs, the SEC also allowed funds investing in Ether, the second-largest cryptocurrency.
Gensler, a vocal critic of the crypto industry due to its volatility and regulatory issues, is set to step down from his post, and Trump is expected to appoint a new SEC chair who is more supportive of digital assets. This change in leadership could pave the way for ETFs focused on other cryptocurrencies beyond Bitcoin and Ether, further expanding the reach of crypto investment vehicles in the U.S.
Trump, who had initially been skeptical of the crypto sector, shifted his stance in recent years, especially as the industry poured significant resources into lobbying and supporting his presidential campaign. This newfound alignment between Trump and the crypto sector is expected to continue driving growth and investment in Bitcoin and other digital assets.
Related topics:
Asian Markets Rise on Wall Street’s Momentum, While Bitcoin and Oil Decline
Markets Rise as Trump’s Treasury Pick Sparks Optimism; Dollar Weakens
Bitcoin Faces Resistance After Nearing $100,000 Mark Amid Trump Administration Optimism
