The positive sentiment extended to altcoins, with Ethereum reaching $3,100 and Solana crossing $200 for the first time this year
Bitcoin spot exchange-traded funds (ETFs) experienced a surge in net inflows last week, registering a total of $1.63 billion. This dramatic rise followed the reelection of Donald Trump as the 47th president of the United States on November 5. The election’s outcome appeared to reinvigorate confidence in the crypto market, leading to an influx of funds that marked a sharp reversal from the initial investor caution.
Initial Market Hesitation and Reversal
Prior to election day, market uncertainty led to significant outflows as institutional investors reacted cautiously. On November 4, just before the election, ETF funds saw a pullback of approximately $541 million, while the election day itself witnessed an additional $116.8 million in withdrawals. However, sentiment shifted swiftly after Trump secured his second term, overcoming his opponent, Kamala Harris.
The market turnaround was evident on November 6, when Bitcoin surged past the $75,000 milestone. That day, the total daily inflows for the crypto investment products peaked at $622 million.
Data from SoSoValue highlighted that BlackRock’s iShares Bitcoin Trust (IBIT) alone achieved an unprecedented trading volume of $4.1 billion, marking its highest since launching in January 2024. However, the surge in trading volume was met with temporary outflows of $69 million, as some investors took the opportunity to offload shares.
Despite this, other major Bitcoin ETFs capitalized on the positive sentiment. Fidelity’s FBTC attracted $308.7 million in new capital, ARK Invest’s ARKB secured $127 million, and Grayscale and Bitwise funds each garnered over $100 million. The cumulative net inflows for November 6 reached $622 million, breaking a three-day pattern of net outflows.
The positive inflows extended to the next day. SoSoValue’s data showed that US-listed Bitcoin ETFs reported a substantial inflow of $1.38 billion, reinforcing the new wave of optimism. This upward momentum continued, with consistent inflows contributing to the week’s impressive total.
Broader Market Effects
The reinvigorated market sentiment was fueled not only by Trump’s reelection but also by Bitcoin’s record-breaking performance. The crypto asset ascended to $81,000 on November 11, a new all-time high.
Data from Deribit exchange shows that investors are confident in the asset’s futures trajectory with open interest for Bitcoin prices exceeding $90,000 growing to $2.8 billion.
This bullish sentiment extended to other cryptocurrencies. On Sunday, Ethereum (ETH) climbed past the $3,000 benchmark, peaking at $3,100, while Solana (SOL) reached $200 for the first time in 2024. Other digital assets like Binance Coin (BNB), NEAR, and Kaspa (KAS) also posted significant gains.
Even meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) were not left behind, seeing impressive gains of approximately 25% and 12% respectively.
next