Key Points
- Approximately $1.9 billion was invested in Bitcoin and Ethereum ETFs during the first week of Trump’s second term.
- Despite market fluctuations, Bitcoin remains dominant while Ethereum shows promise amid growing institutional interest.
During the initial week of Donald Trump’s second presidential term, an impressive surge in investment activity was witnessed in the U.S. Around $1.9 billion was directed into spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs).
Record-breaking Bitcoin ETFs
Data from SoSoValue shows that BTC ETFs recorded $517.67 million in net inflows by January 24th, contributing to a total of $1.76 billion for the week. This extended the $1.96 billion influx observed prior to Trump’s inauguration.
Fidelity’s FBTC led the Bitcoin ETFs, securing $186.07 million in net inflows on January 24th. This increased its cumulative inflows to $13.04 billion, raising its net assets to $22.5 billion. ARK 21Shares’ ARKB followed closely, attracting $168.71 million in net inflows.
Ethereum ETFs Show Promise
Ethereum ETFs also saw gains last week, with $9.18 million in net inflows. This brought the cumulative total for the week to $139.32 million. Bitwise’s Ethereum ETF (ETHW) secured $6.01 million in inflows, boosting its cumulative total to $351.69 million.
Despite the current market fluctuations, Ethereum’s potential in DeFi and tokenized assets continues to offer diverse opportunities for long-term growth.
However, both Bitcoin and Ethereum ETFs faced outflows on January 27th, according to data from Farside Investors. This raises questions about the sustainability of the bullish trend triggered by the Trump administration. The future of these ETFs remains uncertain, and investors will be closely watching to see if the recent momentum continues or stalls.
