The first week of Donald Trump’s second term as U.S. president witnessed a remarkable $1.9 billion in inflows to Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs). This surge reflects the renewed investor confidence tied to the administration’s pro-market stance, fueling what many are calling the “Trump Trade.”
Bitcoin ETFs Shatter Records
According to SoSoValue data, Bitcoin ETFs led the charge, securing $517.67 million in net inflows on January 24 alone. For the week, BTC ETFs amassed $1.76 billion, adding to the $1.96 billion seen in the week before Trump’s inauguration.
Fidelity’s FBTC ETF emerged as a top performer, pulling in $186.07 million on January 24. With cumulative inflows reaching $13.04 billion, its total net assets now stand at $22.5 billion, making FBTC the second-best-performing Bitcoin fund.
ARK 21Shares’ ARKB followed closely, drawing $168.71 million in net inflows, boosting its total to $2.96 billion and net assets to $5.41 billion. BlackRock’s IBIT continued its dominance, capturing $155.69 million, bringing its cumulative inflows to $39.73 billion and net assets to $60.62 billion.
Other funds like the Grayscale Bitcoin Mini Trust contributed $13.01 million, while the WisdomTree Bitcoin Trust added $2.79 million. The only significant outlier was the Bitwise Bitcoin ETF, which saw $8.6 million in outflows, highlighting divergent sentiment among smaller funds.
Ethereum ETFs Hold Their Ground
Ethereum ETFs, though less dominant than their Bitcoin counterparts, also recorded modest gains. Net inflows for ETH ETFs totaled $139.32 million for the week, following a stronger pre-inauguration period that saw $211.97 million in inflows.
Bitwise’s Ethereum ETF (ETHW) led the pack, attracting $6.01 million in inflows and boosting its cumulative total to $351.69 million. Other funds, including Invesco Galaxy’s Ethereum ETF (QETH) and 21Shares Core Ethereum ETF (CETH), saw smaller inflows of $1.99 million and $1.17 million, respectively.
Despite Ethereum’s impressive use cases in decentralized finance (DeFi) and tokenized assets, its ETFs are still overshadowed by Bitcoin’s market dominance. Institutional interest in ETH has been strong, with over $5 billion in inflows since November 2024, but questions remain about its positioning relative to BTC.
Challenges Ahead: Outflows Emerge
While the momentum was strong initially, new data from Farside Investors indicates outflows on January 27. Bitcoin ETFs saw $456.7 million in exits, while Ethereum ETFs shed $136.2 million. This reversal raises concerns about whether the bullish trend sparked by Trump’s pro-market rhetoric can be sustained.
Long-Term Outlook
The significant inflows into Bitcoin and Ethereum ETFs highlight growing institutional interest and the influence of political and economic policies on market sentiment. However, as outflows emerge, investors are left wondering whether this momentum is the beginning of a sustained trend or merely a short-lived spike.
The coming weeks will be crucial in determining whether Bitcoin and Ethereum ETFs can maintain their appeal amid market fluctuations and shifting investor sentiment. With Ethereum’s potential in DeFi and Bitcoin’s reputation as a digital gold standard, both assets remain pivotal in shaping the future of crypto investments.
This article is provided solely for informational and educational purposes and does not constitute financial or investment advice, a recommendation, or an offer or solicitation to buy or sell any financial instrument or digital asset. See our Financial Disclaimer.
This article was generated with the support of AI and reviewed by the Editorial Team. For more information, see our Terms of Service.
