In a significant boost to the cryptocurrency market, Bitcoin spot exchange-traded funds (ETFs) witnessed a massive inflow of $1.76 billion last week.
According to recent data, Blackrock’s IBIT Bitcoin ETF dominated the inflows, with a staggering $1.32 billion entering the fund. Fidelity’s FBTC and Grayscale’s GBTC also posted substantial gains, rounding out the top performers in the segment.
Last week (January 21 to January 24, Eastern Time), Bitcoin spot ETFs had a weekly net inflow of US$1.76 billion. Blackrock Bitcoin ETF IBIT had a weekly net inflow of US$1.32 billion.https://t.co/YanotfbWiJ pic.twitter.com/0kQoHUbuiM
— Wu Blockchain (@WuBlockchain) January 27, 2025
What Fueled Bitcoin ETFs Inflow?
The significant inflow of capital into Bitcoin spot ETFs since Trump took office is hardly surprising, given his pledge to establish America as the world’s premier crypto hub. This development and the shifting regulatory landscape have created a more favorable environment for investors.
As governmental authorities and regulatory bodies provide clearer guidelines on digital asset governance, investor confidence is likely to continue its upward trajectory. The factors in place have instilled a sense of comfort among investors regarding the regulatory environment surrounding cryptocurrencies, further fueling the growth of Bitcoin spot ETFs.
Trump Administration Eases Crypto Banking Rules
Trump’s administration has taken significant steps to foster crypto growth, likely contributing to the increase in spot Bitcoin ETFs.
In recent developments, the United States Securities and Exchange Commission has paved the way for top Wall Street banks to custody and manage digital assets, paving the way for greater crypto adoption in the mainstream financial system.
Trump’s reversal of the previous administration’s banking policy on crypto holdings has been a game-changer for the industry. The SEC’s revocation of the 2022 guidance, Staff Accounting Bulletin 121, has removed a significant obstacle for companies holding digital assets for clients.
Furthermore, Mark Uyeda’s appointment as the new SEC chair is expected to soften crypto regulation. Uyeda has been a staunch supporter of the crypto industry and vocal about his disdain for former SEC Chair Gary Gensler’s unfriendly approach to digital assets, calling it a “total disaster.”
