- Bitcoin ETFs hit record $6.2B inflows in November, fueled by Trump’s pro-crypto stance.
- Regulatory shift expected as SEC Chair Gensler exits, paving way for crypto-friendly policies.
- Institutional investors drive ETF growth, nearing 1M BTC holdings amid rising market confidence.
The U.S. market for Bitcoin ETFs is expanding, fueled by investor optimism about President-elect Donald Trump’s crypto policies.
According to a Bloomberg report, Bitcoin ETFs led by BlackRock Inc. and Fidelity Investments saw record inflows of $6.2 billion in November, surpassing the previous high of $6 billion in February.
This surge mirrors Bitcoin’s price performance, which briefly neared $100,000 before settling at $96,400. The cryptocurrency has more than doubled in value this year, outpacing traditional assets like global equities and gold.
Regulatory Change Sparks Market Optimism
Market sentiment has shifted due to expectations of a regulatory overhaul under the Trump administration. Trump has pledged to reverse perceived restrictions from the Biden era, promising pro-crypto policies and the establishment of a U.S. Bitcoin reserve to promote adoption.
Reports also confirmed SEC Chair Gary Gensler stepping down on January 20, 2025, enabling Trump to appoint a successor expected to favor crypto markets.
Read also: SEC Leadership in Flux: Gallagher Out, Atkins Leads Chair Race Odds
During his tenure, Gensler, known for his hostile stance on the crypto market, guided the cautious approval of U.S. spot Bitcoin ETFs in January 2024 following a court ruling, marking a regulatory shift. The agency has also approved ETFs for Ether, the second-largest cryptocurrency by market capitalization.
Institutional Investors Drive ETF Growth
Spot Bitcoin ETFs, which provide legal access to Bitcoin for institutional investors, saw their largest single-day inflow of $1.38 billion immediately following Trump’s election victory.
Additionally, a crypto analyst, Bitcoin Vista, noted on his X account that BlackRock recorded over $1 billion in inflows on that day, pointing out the growing interest among top financial institutions. Collectively, Bitcoin ETFs now hold nearly 1 million BTC, underscoring their growing market influence.
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