Bitcoin exchange-traded funds (ETFs) have experienced a significant resurgence in demand on January 16, as Bitcoin surged above $102,000, further solidifying its position above the $100K mark ahead of President-elect Donald Trump’s inauguration. This shift in momentum follows a growing sense of optimism around potential regulatory changes and the new administration’s stance on digital assets.
On January 16, the 12 spot Bitcoin ETFs tracked by SoSoValue saw a total of $626.15 million in inflows, continuing a positive trend for the second consecutive day. Over this period, more than $1.3 billion flowed into these funds, showcasing strong investor confidence in Bitcoin’s continued growth. Notably, BlackRock’s IBIT ETF took the lead, attracting $527.87 million in inflows after a relatively weak previous day, reflecting investor enthusiasm for Bitcoin amid its price surge.
ARK and 21Shares’ ARKB ETF followed closely behind with an inflow of $155.44 million, while VanEck’s HODL, Fidelity’s FBTC, and Bitwise’s BITB saw more modest inflows, recording $5.68 million, $4.39 million, and $2.74 million, respectively. However, Grayscale’s GBTC ETF diverged from the trend, seeing an outflow of $69.97 million on the day, somewhat offsetting the overall positive inflows.
The total trading volume across these Bitcoin ETFs reached $2.74 billion on January 16, lower than the previous day’s $3.18 billion. This still marked a notable level of activity, reflecting investor optimism amidst the broader market rally.
Bitcoin’s surge past $102,000 has been attributed to several factors, including increasing speculation around the regulatory environment under President-elect Donald Trump. There are expectations that the incoming administration will adopt a more crypto-friendly stance, particularly in relation to non-fraud-related crypto cases. Trump’s promise to make cryptocurrencies a national priority and the possibility of creating a government Bitcoin stockpile have further fueled excitement in the market.
At the time of writing, Bitcoin’s price remained strong, trading at $101,408 per coin, reflecting a 2% increase for the day. The overall market sentiment remains positive, with growing anticipation for the regulatory shifts expected to take place following Trump’s inauguration on January 20, 2025. This optimism has contributed to an influx of funds into Bitcoin ETFs, suggesting that investors are positioning themselves for potential gains in the digital asset space.