Record Bitcoin ETF Inflows Surge Following Trump Victory and Fed Rate Cut
U.S. spot Bitcoin ETFs saw unprecedented net inflows of $1.38 billion as Bitcoin hit a new all-time high of over $76,900, following Donald Trump’s presidential win and a Federal Reserve rate cut. BlackRock led with over $1.1 billion in inflows, while all 12 ETFs reported gains, reflecting strong investor optimism.
On Thursday, U.S. spot Bitcoin Exchange-Traded Funds (ETFs) experienced unprecedented net inflows exceeding $1.38 billion, coinciding with Bitcoin reaching a new record high, surpassing $76,900 per coin. This surge in investment coincided with Republican Donald Trump securing the U.S. presidency and the Federal Reserve implementing a 25 basis point rate cut. Notably, BlackRock’s Bitcoin ETF accounted for over $1.1 billion of the total inflows, marking the highest amount since its inception in January. Additionally, all 12 ETFs reported net inflows, collectively amounting to nearly $1.4 billion, while Ethereum ETFs garnered $78 million amidst renewed optimism for decentralized finance related to Trump’s electoral victory.
The recent developments in Bitcoin ETF inflows are set against a backdrop of significant political and economic changes. The victory of Donald Trump in the presidential elections is expected to introduce pro-crypto policies and potential deregulation, fostering a more favorable environment for digital assets. Furthermore, the recent Federal Reserve rate cut is also likely to contribute to the attractiveness of cryptocurrencies as alternative investment options, as lower interest rates typically drive investors towards riskier assets, including Bitcoin and other cryptocurrencies.
In summary, the record inflows into U.S. Bitcoin ETFs on Thursday reflect the intersection of political changes and economic policy, showcasing both investor confidence in Bitcoin’s growth and anticipation of a pro-crypto regulatory environment under Trump’s administration. As the market continues to evolve, further analysis will be essential to understand the long-term implications of these developments on the cryptocurrency landscape.
Original Source: www.coindesk.com
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