In brief
- American Bitcoin ETFs collectively saw about $913 million worth of inflows on Tuesday.
- The last time they received such a high amount of cash was on January 17.
- The price of Bitcoin was trading above $93,000 on Wednesday after falling below $75,000 earlier this month.
Investors plowed nearly $913 million into spot Bitcoin exchange-traded funds on Tuesday, the highest amount since mid-January, as the price of the funds’ underlying asset soared amid encouraging signs that U.S. President Donald Trump was scaling back his trade war against China.
The ARK 21Shares Bitcoin ETF (ARKB) and BlackRock’s iShares Bitcoin Trust (IBIT) led the surge with $267 million and $193.5 million in net inflows, respectively, according to data from UK asset manager Farside Investors.
“The spot Bitcoin ETFs went Pac-Man mode yesterday,” quipped Bloomberg Senior ETF Analyst Eric Balchunas in an X post.
The Tuesday spike continued a rebound for Bitcoin ETFs starting last week, which has occurred as Bitcoin’s price has risen to its highest point since early March. The funds received $381 million in assets on Monday.
“Good sign to see flow depth vs say $IBIT doing 90% of the lifting,” Balchunas added. “Pretty strong, all things considered [in my opinion].”
Bitcoin was recently changing hands at $93,225, up nearly 2% over the past 24 hours. The largest cryptocurrency by market value is up almost 14% over the past 14 days.
Bitcoin funds last received so much cash on Jan. 17, when investors pumped over $1 billion into the funds just days before Trump’s inauguration. The Bitcoin ETFs trade on stock exchanges and give speculators easy exposure to the biggest cryptocurrency by market cap, with investors able to buy shares of the funds via brokerage accounts on their mobile phones.
They have been hugely popular with investors, receiving more than $36 billion in assets during their 15-month history. IBIT reached $10 billion in assets faster than any ETF in the sector’s 32-year history.
But they began shedding assets as Bitcoin and other risk-on assets tumbled shortly after Trump took office, amid concerns that his economic policies would lead to higher prices and slower growth.
Bitcoin nearly broke $109,000 the day of Trump’s inauguration, setting a new all-time record. Trump’s crypto-friendly administration has ratcheted back regulation, honoring a campaign promise.
But until recently, BTC’s performance has correlated more to tech stocks than risk-off assets such as gold, falling below $75,000 earlier this month. Analysts have differed on whether this trend will continue.
Edited by James Rubin
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