Bitcoin and Ethereum ETFs See Record Inflows After US Election

By: Isha Das

The recent US election has had a significant impact on cryptocurrency exchange-traded funds (ETFs), with both Bitcoin and Ethereum ETFs experiencing record inflows. Over the past few days, major financial institutions such as BlackRock, Fidelity, and Grayscale have reported substantial investments in their Bitcoin ETFs, with a total of $3.4 billion inflows recorded post-election, as per data collected by Farside. This surge suggests an increased institutional interest and belief in the long-term prospects of cryptocurrencies. The election saw Donald Trump returning to power, a development that seems to have injected fresh momentum in the crypto market.

On November 7, BlackRock’s IBIT Bitcoin ETF witnessed a significant inflow of $1.12 billion, the largest single-day investment for the listed Bitcoin ETFs. Similarly, Fidelity's FBTC and Bitwise’s BITB also reported notable inflows of $666 million and $178 million respectively. The Grayscale GBTC fund continued to attract investments, adding $61 million more. This trend shows how traditional financial markets are becoming more receptive to Bitcoin, with substantial inflows driven by positive sentiment from Trump's election win potentially fueling the tide.

Ethereum ETFs have also seen a similar monumental response. Post-election, Fidelity’s spot Ether ETF led the market with $115.5 million in inflows on November 11, a record for the fund. This pushed the total inflows for US Ethereum ETFs to a remarkable $295 million, marking the largest ever influx in a single day since these ETFs were launched back in July. BlackRock's iShares Ethereum Trust ETF followed closely with $100.5 million. This unprecedented inflow reflects the ongoing rally in the crypto market with Ethereum gaining a discernible traction among investors.

The participation of other financial institutions including Ark Invest, Invesco, and Valkyrie, amongst others, underscores a broader wave of acceptance and credibility for both Bitcoin and Ethereum in the traditional financial sphere. As the market anticipates further policy and economic developments under Trump's leadership, analysts suggest that the resulting spikes in Bitcoin and Ethereum ETF investments highlight an opportunistic strategy by institutional investors to capitalize on potential crypto market surges.