BlackRock Fund Propels US Bitcoin ETFs to Record Inflows Amid Trump’s Crypto Boost

In a remarkable turn of events that underscores the growing acceptance and investment appetite for digital currencies, US exchange-traded funds (ETFs) focused on Bitcoin have experienced a historic daily net inflow. The surge amounted to a staggering $1.38 billion, spearheaded by the BlackRock’s iShares Bitcoin Trust (IBIT), which captured the lion's share on Thursday. This influx aligns with the upswing in market sentiment following President-elect Donald Trump's commitment to fostering a regulatory environment favorable to the digital-asset industry.

BlackRock’s iShares Bitcoin Trust emerged as the undisputed heavyweight, contributing approximately 81% of the inflow, backed by an influx of $1.1 billion in subscriptions for the fund on a solitary day. After its trading volume reached unprecedented heights, IBIT has made it evident that investor confidence is peaking, coinciding with the anticipated proactive policies by the Trump administration.

The burgeoning demand for the prominent Bitcoin fund is a testament to Trump’s grand vision to position the US at the vanguard of the blossoming digital-asset sector. This sentiment played a pivotal role as Bitcoin itself soared, hitting an all-time high of $76,956. Caroline Bowler, CEO of BTC Markets Pty, aptly points out the emergence of a considerable risk: a potential feedback loop where skyrocketing ETF inflows amplify Bitcoin prices, subsequently drawing more capital into the fray—a speculative dynamic that could shape the future trajectory of cryptocurrency prices.

As the euphoria stemming from Trump's reelection campaign promises propels the market, several technical indicators have prompted speculation about an impending consolidation phase. Despite this, the flagship cryptocurrency remained resilient, with its value floating around $76,000 at the start of the trading day in London. Notably, Bitcoin's impressive rally, which soared by approximately 80% throughout 2024, finds its roots in other factors, including interest rate cuts by the Federal Reserve. These gains eclipse those from traditional investments, casting a shadow over the likes of global equities and precious metals.

Moving forward, much hinges on the Trump administration's execution of its proposed strategies. The concept of a strategic Bitcoin reserve and the placement of digital asset-friendly regulators are instrumental to the sustained robustness of the cryptocurrency market. As the industry stands at a potential inflection point, both investors and observers alike will closely monitor the implications of policy decisions on the trajectory of digital currencies.