In a significant show of investor confidence, U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) saw an influx of around $1.9 billion during the first week of Donald Trump’s second presidential term. This surge is part of a broader trend known as the “Trump Trade,” where market participants increasingly view cryptocurrencies as a hedge against economic uncertainty.
Bitcoin ETF Performance
As of January 24, 2025, Bitcoin ETFs alone held a substantial $123.06 billion in Bitcoin, accounting for 5.92% of the cryptocurrency’s total market capitalization. The momentum for Bitcoin funds has been particularly robust, with net inflows reaching $2.72 billion over the past two weeks.
The week ending January 24 recorded Bitcoin ETFs with $517.67 million in net inflows, contributing to a remarkable total of $1.76 billion for that week. This follows a pre-inauguration week that also experienced significant inflows of $1.96 billion.
- Fidelity’s Wise Origin Bitcoin Fund: Led the way with $186.07 million in net inflows, raising its cumulative total to $13.04 billion and net assets to $22.5 billion, making it the second-best-performing Bitcoin fund in the market.
- ARK 21Shares Bitcoin ETF: Captured $168.71 million in net inflows, bringing its cumulative net inflows to $2.96 billion and net assets to $5.41 billion.
- BlackRock’s iShares Bitcoin Trust: Continued to lead the market, garnering $155.69 million in inflows, with an impressive $39.73 billion in cumulative net inflows and $60.62 billion in net assets.
- Grayscale Bitcoin Mini Trust: Reported modest inflows of $13.01 million.
- WisdomTree Bitcoin Trust: Managed to secure $2.79 million.
- Bitwise Bitcoin ETF: Experienced outflows, losing $8.6 million, highlighting the volatility and competitive nature of the cryptocurrency ETF landscape.
Ethereum ETF Activity
Ethereum ETFs, while not as dominant as their Bitcoin counterparts, also experienced positive movement, with net inflows totaling $139.32 million. This follows a pre-inauguration week that yielded $211.97 million in inflows, indicating a growing interest in Ethereum as well.
The week ending January 24 saw a more modest $9.18 million in net inflows, indicating a quieter period for Ethereum funds, particularly as major players like BlackRock and Fidelity were absent from the day’s results.
- Bitwise Ethereum ETF: Posted $6.01 million in net inflows, raising its cumulative total to $351.69 million.
- Invesco Galaxy Ethereum ETF: Made a notable return, securing $1.99 million on its first activity day since December 19, 2024.
- 21Shares Core Ethereum ETF: Contributed positively with $1.17 million in net inflows, raising its cumulative total to $11.4 million.
Market Trends and Future Outlook
This trend highlights a growing interest in smaller funds, as investors appear to be diversifying their portfolios beyond the larger, more established ETFs. The current landscape of cryptocurrency ETFs reflects a dynamic and evolving market, where investor sentiment can shift rapidly in response to political and economic developments.
As the Biden administration continues to navigate its policies, the performance of these funds will likely remain closely tied to broader market trends and investor confidence in the cryptocurrency sector. With the ongoing influx of capital into Bitcoin and Ethereum ETFs, the cryptocurrency market is poised for continued growth, driven by both institutional and retail investors seeking exposure to digital assets.
The interplay between traditional finance and the burgeoning crypto market is becoming increasingly pronounced, as more investors recognize the potential of these innovative financial products. This evolving landscape suggests that the future of cryptocurrency ETFs will be shaped by both regulatory developments and market dynamics.
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