U.S. spot Bitcoin ETFs saw a significant slowdown in weekly inflows, recording $1.76 billion compared to $1.96 billion in the prior week. This dip comes amid high anticipation from the crypto community, which had expected a surge in inflows after Donald Trump’s inauguration on January 20.
Despite the overall decline, Bitcoin ETFs recorded their strongest single-day inflow of the year on January 17, pulling in over $1 billion just days before Trump took office. However, inflows began to taper off following the inauguration, reflecting a stark contrast to the optimism that dominated discussions in the crypto market.
“This pullback in Bitcoin ETF weekly inflows highlights the market’s mixed sentiment despite the recent optimism tied to the new administration’s potential impact on digital asset policies,” said Clara Jenkins, a senior crypto strategist at Fidelity.
Day-by-Day Breakdown
On January 21, the first business day after Trump’s inauguration, Bitcoin ETFs drew in $802.5 million, led by BlackRock’s iShares Bitcoin Trust (IBIT), which captured $661.9 million of the total.
Over the next two days, inflows declined sharply to $248.65 million and $188.65 million, respectively. This steady decline surprised analysts and investors, many of whom had expected inflows to accelerate as the market digested Trump’s signing of an executive order on digital assets.
However, the downward trend reversed on Friday, January 24, when Bitcoin ETFs regained momentum, recording inflows of $517.67 million. Fidelity’s FBTC led the resurgence, attracting $186.07 million. ARK 21Shares’ ARKB and BlackRock’s IBIT followed closely with inflows of $168.71 million and $155.69 million, respectively.
Smaller contributions were observed in Grayscale Bitcoin Mini Trust and WisdomTree’s BTCW, which saw inflows of $13.01 million and $2.79 million. Meanwhile, Bitwise’s BITB was the outlier, with investors withdrawing $8.6 million, bucking the overall trend.
Bitcoin Price Momentum Weakens
The decline in Bitcoin ETF weekly inflow coincided with a shift in Bitcoin’s price momentum. After President Trump signed an executive order on January 23 aimed at creating a working group for digital assets, Bitcoin’s price failed to sustain its rally.
The executive order, while viewed as a step forward, disappointed many crypto advocates. It outlined plans to provide guidance on digital asset policy and assess the feasibility of creating a government-held cryptocurrency reserve but stopped short of establishing a strategic Bitcoin reserve—an initiative many in the crypto space had hoped for.
Bitcoin has since struggled, losing 4.5% in value over the past 24 hours and 1.4% over the past week. The cryptocurrency is now hovering near the critical $100,000 psychological support level, a key threshold many analysts see as vital for maintaining upward momentum.
“Breaking below $100,000 would be detrimental to market sentiment, especially given the recent decline in Bitcoin ETF weekly inflows,” said Michael Carter, an analyst at CryptoQuant.
Regulatory and Investor Implications
The decline in Bitcoin ETF weekly inflow comes at a time when regulatory clarity remains uncertain. Trump’s executive order has sparked debate about the government’s approach to cryptocurrencies, with some viewing it as a cautious step forward while others criticize it for lacking substantive action.
“The executive order is a mixed bag,” said Lisa Tran, a blockchain policy expert. “It’s encouraging to see the administration prioritize digital assets, but without clear action steps, it’s unlikely to significantly move the needle for institutional investors.”
The slower pace of inflows could also reflect broader concerns about the future of Bitcoin ETFs. While these products have been instrumental in driving institutional adoption, questions remain about their long-term sustainability amid fluctuating market conditions.
Future Outlook for Bitcoin ETFs
Despite the recent slowdown, experts remain optimistic about the long-term prospects of Bitcoin ETFs. Many believe that regulatory clarity and increasing institutional adoption will eventually reignite interest in these investment vehicles.
“Bitcoin ETF weekly inflows may have dipped, but this is likely a temporary pause,” said Jenkins. “As the market adjusts to the new administration and regulatory developments, we could see a renewed surge in demand.”
However, for that to happen, Bitcoin must hold its ground near the $100,000 level. A failure to do so could shake investor confidence and further dampen inflows.
The decline in Bitcoin ETF weekly inflow underscores the unpredictable nature of the crypto market, even amid significant political and regulatory developments. While the slowdown surprised many, it serves as a reminder of the complex interplay between market sentiment, regulatory actions, and investor behavior.
As the market continues to adapt to the new administration’s approach to digital assets, all eyes remain on Bitcoin’s price and its ability to maintain key support levels.
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