Bitcoin ETF Drama: Trump’s Inauguration and the Great Inflow Disappointment!

by

In the grand theater of finance, where dreams of digital gold dance like shadows on the wall, the inflows into spot Bitcoin exchange-traded funds in the United States have taken a curious turn. Just as the crypto community was ready to pop the champagne following President Donald Trump’s inauguration, the reality struck like a cold winter wind—less money was flowing in than expected. 🍾❄️

According to the ever-watchful eyes of SoSoValue, the twelve spot Bitcoin ETFs, those glittering vessels of hope, saw their inflows dwindle to a mere $1.76 billion this past week. This was a staggering 10.5% drop from the previous week’s $1.96 billion. One might wonder if the investors had suddenly decided to invest in something more stable—like, say, a potato farm. 🥔

On January 17, the ETFs basked in the glow of over $1 billion in inflows, their highest since the dawn of the year, just before the grand inauguration. But lo and behold, as Trump took the oath on January 20, the inflows began to retreat like a timid rabbit from a hungry fox. 🦊

On the first business day post-inauguration, these financial contraptions managed to attract $802.5 million, with BlackRock’s IBIT leading the charge at $661.9 million. Yet, the following days told a different tale, with inflows plummeting to $248.65 million and $188.65 million, respectively. It was as if the investors had collectively decided to take a long nap. 😴

But wait! Just when the crypto community thought all was lost, Friday, January 24, brought a glimmer of hope with $517.67 million flowing back into the funds. Fidelity’s FBTC took the lead that day, drawing in $186.07 million, while ARK 21Shares’ ARKB and BlackRock’s IBIT followed closely behind. It was a veritable race of the ETFs! 🏁

However, not all was rosy in the land of Bitcoin. Grayscale Bitcoin Mini Trust and WisdomTree’s BTCW saw modest inflows of $13.01 million and $2.79 million, respectively. Meanwhile, Bitwise’s BITB stood out as the lone wolf, with $8.6 million withdrawn by investors. Perhaps they were just looking for a better deal at the local crypto bazaar? 🛒

The decline in weekly inflows coincided with a shift in Bitcoin’s price momentum, following Trump’s executive order on January 23. This order, which aimed to establish a working group on digital assets, fell short of the crypto community’s lofty expectations. It was like ordering a gourmet meal and receiving a cold slice of bread instead. 🍞

While the executive order outlined plans to advise the White House on digital asset policy and assess the potential for a government-held stockpile of seized cryptocurrencies, it failed to propose the establishment of a strategic Bitcoin reserve. Many crypto advocates were left scratching their heads, wondering if they had misread the menu. 🤔

As of now, Bitcoin (BTC), the reigning monarch of cryptocurrencies, is down 4.5% over the past day and 1.4% over the past week, inching closer to the critical $100k psychological support level. Experts whisper that this level is essential for Bitcoin to regain its momentum and chart a path toward a new all-time high. But for now, it seems the digital gold rush has hit a bit of a snag. 🏔️

Read More

2025-01-27 10:17