12 bitcoin exchange-traded funds (ETFs) in the United States are nearing record monthly net inflows, buoyed by the digital asset’s historic surge toward $100,000 after it won the endorsement of President-elect Donald Trump.
ETFs issued by companies like BlackRock Inc. (BLK) and Fidelity Investments had attracted $6.2 billion in investments as of November, according to data compiled by Bloomberg. The previous record of $6 billion was reached in February as investors cheered the product’s launch earlier this year.
Bitcoin last week nearly hit the critical $100,000 mark for the first time, boosted by Trump’s promise to ease the Biden administration’s crackdown on crypto and appoint more crypto-friendly regulators. Trump has also backed the creation of a national strategic stock for the native cryptocurrency.
“We will continue to see inflows into ETFs, especially under a Trump administration, where it is expected to become easier for businesses and retirement funds to own these assets,” said Josh Gilbert, market analyst at eToro.
Bitcoin’s rally has slowed slightly this week, with BTC tokens trading around $96,843 as of Friday. Altcoins such as Cardano (ADA-USD) and Solana (SOL-USD) are trading in narrow ranges. Bitcoin has more than doubled this year, outperforming assets such as global stocks and gold.
The Securities and Exchange Commission (SEC) under outgoing chairman Gary Gensler reluctantly approved the launch of a U.S. spot-Bitcoin ETF in January after a court ruling in 2023. The agency later approved a portfolio investing in the second-largest digital asset, Ether (ETH-USD).
Trump is expected to appoint a digital asset advocate to head the agency, potentially paving the way for ETFs for other tokens. Trump himself, who was previously skeptical of the industry, changed his mind when the sector invested large amounts of money to promote his interests during the election campaign.
