Bitcoin Spot ETFs Report $1.63 Billion in Weekly Inflows

Bitcoin spot exchange-traded funds (ETFs) saw net inflows of $1.63 billion last week, following Donald Trump's reelection as the 47th president of the United States on November 5. This outcome boosted confidence in the crypto market, reversing prior investor caution.

Initial Market Hesitation and Reversal

Before the election, uncertainty led to significant outflows from ETFs, with a pullback of approximately $541 million on November 4 and an additional $116.8 million on election day. After Trump’s victory over Kamala Harris, market sentiment shifted dramatically.

The turnaround was evident on November 6, when Bitcoin surpassed $75,000, with total daily inflows for crypto investment products peaking at $622 million. Data from SoSoValue indicated that BlackRock's iShares Bitcoin Trust (IBIT) achieved a trading volume of $4.1 billion, its highest since launching in January 2024. However, there were temporary outflows of $69 million as some investors sold shares.

Other major Bitcoin ETFs benefited from this positive sentiment: Fidelity’s FBTC attracted $308.7 million, ARK Invest’s ARKB secured $127 million, and Grayscale and Bitwise funds each garnered over $100 million. Cumulative net inflows for November 6 reached $622 million, ending a three-day trend of net outflows.

This positive trend continued, with US-listed Bitcoin ETFs reporting an inflow of $1.38 billion the following day, reinforcing optimism in the market.

Broader Market Effects

The renewed market sentiment was driven by both Trump's reelection and Bitcoin's record performance, reaching $81,000 on November 11. Data from Deribit exchange showed confidence in Bitcoin's future trajectory, with open interest for prices exceeding $90,000 growing to $2.8 billion.

This bullish sentiment also extended to other cryptocurrencies. Ethereum (ETH) surpassed $3,000, peaking at $3,100, while Solana (SOL) reached $200 for the first time in 2024. Other digital assets, including Binance Coin (BNB), NEAR, and Kaspa (KAS), also experienced notable gains.

Meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) recorded gains of approximately 25% and 12%, respectively.