Bitcoin Etfs see record $1.3b inflows after trump win, fed rate cuts
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The victory of Republican Donald Trump in the U.S. presidential election and a Federal Reserve rate cut fueled a record $1.38 billion in Bitcoin ETF inflows, underscoring a strong bullish sentiment in crypto markets. BlackRock’s IBIT product alone accounted for $1.1 billion, with Ethereum ETFs also witnessing renewed investor interest.
Record-Breaking Bitcoin ETF Inflows Reflect Market Optimism
The U.S.-listed Bitcoin ETFs experienced an unprecedented surge in investor inflows, totaling $1.38 billion on Thursday, marking a historic day for cryptocurrency-focused exchange-traded products. This rally came shortly after Donald Trump’s election victory, which sparked widespread optimism for pro-crypto policies, coupled with a Federal Reserve decision to cut interest rates by 25 basis points—a move traditionally favorable to risk assets. BlackRock’s IBIT led with $1.1 billion in inflows, a new high since its January launch. Crypto-focused funds continue to attract investors, especially as broader markets recalibrate to a landscape of anticipated deregulation and supportive fiscal policies under Trump’s administration. Unlike traditional assets, Bitcoin’s response to Trump’s win highlights its unique position as an alternative investment, poised to benefit from increased liquidity and a potentially weakened dollar.
Ethereum ETFs Benefit from DeFi Hopes Post-Election
Alongside Bitcoin, Ethereum (ETH) ETFs logged $78 million in net inflows, with DeFi (Decentralized Finance) prospects driving this rise. Trump’s anticipated deregulation efforts are seen as advantageous for decentralized projects, raising investor interest in Ethereum’s potential growth within this sector. ETH climbed over 10% as bullish sentiment surged, fueled by expectations of enhanced regulatory clarity for DeFi applications in the U.S.
Impact of Fed’s Rate Cut on Crypto Sentiment
The Federal Reserve’s 25 basis-point rate cut adds another layer of support to crypto’s bullish momentum. Lower rates generally reduce the opportunity cost of holding non-yielding assets like Bitcoin, as they weaken the dollar and increase liquidity. BTC’s recent rise, surpassing $76,000, underscores the asset’s capacity to benefit from such macroeconomic shifts, with broader implications for alternative assets in a low-interest-rate environment.
Looking Forward: Potential for Sustained Inflows
The simultaneous influence of a pro-crypto presidency and accommodative Fed policy sets a favorable environment for Bitcoin ETFs. With none of the twelve Bitcoin ETFs experiencing outflows, market sentiment shows strong momentum for further inflows, likely supporting BTC prices in the near term.
Record-Breaking Bitcoin ETF Inflows Reflect Market Optimism
The U.S.-listed Bitcoin ETFs experienced an unprecedented surge in investor inflows, totaling $1.38 billion on Thursday, marking a historic day for cryptocurrency-focused exchange-traded products. This rally came shortly after Donald Trump’s election victory, which sparked widespread optimism for pro-crypto policies, coupled with a Federal Reserve decision to cut interest rates by 25 basis points—a move traditionally favorable to risk assets. BlackRock’s IBIT led with $1.1 billion in inflows, a new high since its January launch. Crypto-focused funds continue to attract investors, especially as broader markets recalibrate to a landscape of anticipated deregulation and supportive fiscal policies under Trump’s administration. Unlike traditional assets, Bitcoin’s response to Trump’s win highlights its unique position as an alternative investment, poised to benefit from increased liquidity and a potentially weakened dollar.
Ethereum ETFs Benefit from DeFi Hopes Post-Election
Alongside Bitcoin, Ethereum (ETH) ETFs logged $78 million in net inflows, with DeFi (Decentralized Finance) prospects driving this rise. Trump’s anticipated deregulation efforts are seen as advantageous for decentralized projects, raising investor interest in Ethereum’s potential growth within this sector. ETH climbed over 10% as bullish sentiment surged, fueled by expectations of enhanced regulatory clarity for DeFi applications in the U.S.
Impact of Fed’s Rate Cut on Crypto Sentiment
The Federal Reserve’s 25 basis-point rate cut adds another layer of support to crypto’s bullish momentum. Lower rates generally reduce the opportunity cost of holding non-yielding assets like Bitcoin, as they weaken the dollar and increase liquidity. BTC’s recent rise, surpassing $76,000, underscores the asset’s capacity to benefit from such macroeconomic shifts, with broader implications for alternative assets in a low-interest-rate environment.
Looking Forward: Potential for Sustained Inflows
The simultaneous influence of a pro-crypto presidency and accommodative Fed policy sets a favorable environment for Bitcoin ETFs. With none of the twelve Bitcoin ETFs experiencing outflows, market sentiment shows strong momentum for further inflows, likely supporting BTC prices in the near term.