Bitcoin ETF Inflows Soar Amid Trump’s Pro-Crypto Stance

Investor enthusiasm for Bitcoin soared following campaign promises from President-elect Donald Trump, driving record inflows into the U.S. Bitcoin spot ETF market. Over the past trading sessions, net inflows totaled $490.3 million, reflecting heightened optimism about Trump's proposed crypto policies.

Over the last week, the market recorded inflows of $3.35 billion, the highest since the spot ETF market’s inception in January 2024. According to data from Farside Investors:

• iShares Bitcoin Trust (IBIT): net inflows reached $2.50 billion.
• Fidelity Wise Origin Bitcoin Fund (FBTC): reported $772.7 million in net inflows.
• ARK 21Shares Bitcoin ETF (ARKB): saw weekly net inflows of $301.5 million.

Link: https://www.theblock.co/data/crypto-markets/bitcoin-etf/spot-bitcoin-etf-flows

BlackRock's iShares Bitcoin Trust (IBIT) continues to dominate, with cumulative inflows of $31.33 billion since its launch, surpassing the market’s total net inflows of $30.81 billion. In contrast, the Grayscale Bitcoin Trust (GBTC) faced cumulative net outflows of $20.33 billion during the same period.

Trump’s Pro-Crypto Agenda Gains Momentum

President-elect Trump’s campaign pledge to position Bitcoin as a U.S. strategic reserve asset has sparked significant market interest. His nomination of Scott Bessent as Treasury Secretary signals further progress.

Bessent has been vocal about the importance of Bitcoin and the broader cryptocurrency market for U.S. investors. He criticized the previous administration's anti-crypto stance, emphasizing the need for regulatory clarity and supportive policies to foster innovation and market stability.

Key steps for establishing Bitcoin as a strategic reserve include approval from Congress, the Federal Reserve, the Treasury Department, and the President. Additionally, the SEC and Commodity Futures Trading Commission (CFTC) must finalize regulatory frameworks. Trump's pro-crypto nominations for key roles, including SEC Chair, are expected to play a pivotal role in shaping these guidelines.

Technical Outlook: Bitcoin Price Analysis

Bitcoin remains resilient despite minor retreats, with prices holding above the 21-day Exponential Moving Average (EMA), signaling continued bullish momentum.

• Upside targets: breaking above the $99,318 high from November 22 could propel Bitcoin past the $100,000 psychological barrier, opening the door to a potential rally toward $120,000.
• Downside risks: a drop below $95,000 could trigger a correction toward $90,000, with $87,500 as a secondary support level.

Market participants should closely monitor U.S. Bitcoin spot ETF flows, developments in regulatory leadership, and broader macroeconomic trends.

Conclusion

The U.S. Bitcoin spot ETF market is surging, fueled by a confluence of Trump’s pro-crypto policies, promising regulatory changes, and record-breaking fund inflows. With Bitcoin trading near critical price levels, the coming weeks will be pivotal for both institutional adoption and market direction.

Investors are advised to stay vigilant as political and regulatory shifts could further shape the trajectory of Bitcoin’s integration into the U.S. financial system.