According to recent data, US Bitcoin ETFs saw a surge in investments in January, with an impressive influx of $5.25 billion, significantly surpassing the previous month’s $4.53 billion.
BlackRock’s iShares Bitcoin Trust (IBIT) topped the list, gaining a substantial 61% market share with $3.23 billion in new investments. This significant influx propelled IBIT’s net assets to $59.39 billion by month-end, a $7.67 billion increase.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) received the second-largest share of January’s inflows, attracting $1.28 billion in fresh capital. As a result, FBTC’s net assets grew by 14% to $21.76 billion, up from $18.87 billion at the beginning of the month.
This substantial growth can be attributed mainly to President Trump’s return to office, which has generated widespread interest in the cryptocurrency market.
Trump’s election win has sparked significant growth in Bitcoin ETFs, driven by an expansion of regulatory frameworks and increasing adoption of cryptocurrencies. These developments have created a favorable environment for Bitcoin ETFs to thrive, with investors increasingly seeking exposure to the booming digital asset market. As a result, Bitcoin ETFs have experienced remarkable growth, with some even reaching record highs on many occasions.
Bitcoin Retreats Amid Trump’s Tariff Plans
However, despite this influx of investments, the current price of Bitcoin has declined, standing at $98,800 at press time. The drop can be attributed to President Trump’s recent imposition of tariffs on various countries, including Canada, Mexico, and China.
Over the weekend, President Trump imposed tariffs on Canada, Mexico, and China, targeting specific imports. The tariffs include a 25% on most Canadian and Mexican imports, while Chinese goods will face a 10% tariff. Notably, energy resources from Canada will receive a lower 10% tariff.
According to the announcement, Trump’s primary goal with these tariffs is to pressure the affected countries into taking action against illegal immigration and the flow of fentanyl and other drugs into the US. The move aims to hold these countries accountable for addressing these pressing issues.
The tariffs have led to declining investor sentiment, causing a ripple effect in the cryptocurrency market. The uncertainty surrounding the trade tensions has prompted investors to adopt a cautious approach, resulting in the current price drop. As the situation unfolds, how the cryptocurrency market will respond remains to be seen.
