(Bloomberg) -- US exchange-traded funds investing in Bitcoin posted a record daily net inflow of $1.38 billion, bolstered by President-elect Donald Trump’s embrace of the digital-asset industry and promise of supportive regulations.
BlackRock Inc.’s iShares Bitcoin Trust accounted for about 81% of Thursday’s deluge, which came a day after the ETF’s trading volume jumped to an all-time peak, according to data compiled by Bloomberg. The $1.1 billion of net subscriptions for the fund — also known as IBIT — was also unprecedented.
The surging investor demand helped to push Bitcoin to another all-time high, with the original cryptocurrency rising as much as 1.7% to $77,272 on Friday. It has set fresh record highs every day since Tuesday.
The demand for the world’s biggest Bitcoin fund is another sign of how Trump’s pledge to put the US at the center of the digital-asset industry is reshaping the crypto market.
Caroline Bowler, chief executive officer of crypto exchange BTC Markets Pty, said there is a “significant risk of a feedback loop, where rising ETF inflows push Bitcoin prices higher, attracting more capital.”
Much depends now on Trump following through on campaign vows, such as creating a strategic Bitcoin stockpile and appointing regulators enamored with digital assets. Some technical indicators suggest a two-month rally driven by optimism about Trump’s reelection is now due for a pause.
Bitcoin’s roughly 80% advance so far in 2024, partly fueled by Federal Reserve interest-rate cuts, exceeds the returns from traditional investments such as global stocks and gold.
©2024 Bloomberg L.P.