- Over $1.9 billion was invested in Bitcoin and Ethereum ETFs during Trump’s second-term debut.
- Ethereum ETFs show promise, but Bitcoin remains dominant amid market fluctuations and institutional interest.
In the first week of Donald Trump’s second presidential term, the U.S. witnessed an extraordinary surge in investment activity, with approximately $1.9 billion funneled into spot Bitcoin [BTC] and Ethereum [ETH] exchange-traded funds (ETFs).
This influx reflects the growing momentum behind the so-called “Trump Trade” phenomenon, as investors rally around the administration’s pro-market stance.
Bitcoin ETFs break records
According to SoSoValue data, BTC ETFs recorded $517.67 million in net inflows by the 24th of January, contributing to $1.76 billion total for the week—extending the $1.96 billion influx observed before Trump’s inauguration.
The week closed strongly for Bitcoin ETFs, with Fidelity’s FBTC leading by securing $186.07 million in net inflows on the 24th Jof anuary.
This pushed its cumulative inflows to $13.04 billion, elevating its net assets to $22.5 billion. FBTC now stands as the second-best-performing Bitcoin fund.
ARK 21Shares’ ARKB followed closely, attracting $168.71 million in net inflows, bringing its total to $2.96 billion, with net assets of $5.41 billion.
Meanwhile, BlackRock’s IBIT dominated the BTC ETF landscape, amassing $155.69 million in inflows. This drove its cumulative inflows to $39.73 billion, securing $60.62 billion in net assets.
Smaller contributions came from the Grayscale Bitcoin Mini Trust, recording $13.01 million, and the WisdomTree Bitcoin Trust (BTCW), posting $2.79 million.
The only outlier was the Bitwise Bitcoin ETF, experiencing $8.6 million in outflows, contrasting the otherwise bullish sentiment.
Ethereum ETFs were no exception
Ethereum ETFs experienced modest gains last week, with $9.18 million in net inflows, bringing the cumulative total for the week to $139.32 million. This followed a more robust pre-inauguration week, which saw $211.97 million in inflows.
Interestingly, top performers like BlackRock and Fidelity were notably absent from the day’s results, leaving room for smaller funds to take the spotlight. Leading the charge, Bitwise’s Ethereum ETF (ETHW) secured $6.01 million in inflows, boosting its cumulative total to $351.69 million.
Other funds like the Invesco Galaxy Ethereum ETF (QETH) and 21Shares Core Ethereum ETF (CETH) also saw modest inflows of $1.99 million and $1.17 million, respectively.
This subdued performance has raised questions about ETH’s positioning compared to BTC, which appears to be drawing more attention from investors as a safer or more promising bet.
Nonetheless, Ethereum ETFs have seen substantial institutional interest, attracting over $5 billion since November 2024.
With use cases in DeFi and tokenized assets, Ethereum’s potential continues to offer diverse opportunities, positioning it for long-term growth despite current market fluctuations.
As ETH ETFs continue to gain traction, they may exert pressure on Bitcoin’s dominance, especially as institutions explore Ethereum’s broader applications.
Will the momentum continue?
However, the latest data from Farside Investors shows that both Bitcoin and Ethereum ETFs faced outflows on the 27th of January. Bitcoin saw $456.7 million in exits, while Ethereum ETF shed $136.2 million.
This raises questions about whether the bullish trend triggered by the Trump administration will be sustained or prove short-lived.
Therefore, the evolution of these ETFs remains uncertain. Investors will be closely watching to see if the recent momentum continues or stalls.
