- Bitcoin ETFs saw $340.7M in inflows after Trump delayed tariffs on Canada, Mexico.
- IBIT led Bitcoin ETF inflows with $249M, signaling strong investor interest.
- Bitcoin ETFs gain traction, with over $40B in inflows since January 2024.
Spot Bitcoin exchange-traded funds (ETFs) saw a significant boost in net inflows on February 4. This came after President Donald Trump decided to delay tariffs on Canada and Mexico. The 12 Bitcoin ETFs tracked by Farside Investors received a total of $340.7 million in inflows. This marked a sharp contrast to February 3, which saw $234.4 million in withdrawals.
IBIT Leads Bitcoin ETF Inflows
The biggest contributor to the influx was IBIT, which saw an inflow of $249 million. ARKB followed with $56.1 million, and BITB added $16.1 million. However, GBTC reported a $19.5 million outflow. This shift suggests that investors may be moving their assets away from GBTC.
Despite the large inflows, many other Bitcoin ETFs showed little movement. ETFs like FBTC, BTCO, and BTCW reported no net flows. This indicates that the broader Bitcoin ETF market is still in a state of flux.
Trump’s Tariff Delay Fuels Market Recovery
The financial market responded swiftly to President Trump’s postponement of tariffs. The Bitcoin price reached $100,000 during a brief market spike on February 4 indicating optimism among traders. Ethereum alongside Solana experienced substantial growth along with other crypto assets. The market recovery occurred following significant cryptocurrency market liquidations which began after Trump’s tariff announcement.
Additionally, Trump signed an executive order to create a sovereign wealth fund. The executive order produced speculation that the U.S. government could purchase Bitcoin through this fund. The crypto community has high hopes that Bitcoin will eventually integrate into the United States financial reserve system.
Bitcoin ETFs Gain Institutional Support
Institutional investors continue to show rising interest in Bitcoin exchange-traded funds. The ETF market registered total inflows of $4.5 billion in January 2024. This made it one of the strongest months for Bitcoin ETFs, according to Farside Investors. The Bitcoin ETF market has attracted more than $40 billion worth of cumulative investments across the past several months.
The continuous growth of Bitcoin ETFs has gained financial world acceptance. Investors have selected these ETFs which now control assets above $125 billion. The rapid increase in Bitcoin ETF popularity indicates growing investor trust in cryptocurrency investments. The growing use of Bitcoin demonstrates that it functions as a reputable store of value which competes against traditional gold investment.
