Bitcoin ETFs See $1.18 Billion Inflow Day, Price Hits $113,820.92

US Bitcoin spot exchange-traded funds (ETFs) experienced their second-largest inflow day in history, with the inflow rate only surpassed by the day following Donald Trump's election victory. This significant inflow marked a new post-Trump election victory high for Bitcoin ETFs. The surge in inflows was accompanied by Bitcoin reaching a new all-time high, surpassing $113,800. This rally was fueled by strong institutional inflows, a more favorable regulatory environment, and an increased appetite for risk across markets. The price gains followed a week of building momentum, with traders becoming increasingly optimistic about the potential benefits of digital assets from changing political winds.

The flagship cryptocurrency hit a new high of $113,820.92, continuing its upward trend from the previous day's record close. Over the past 24 hours alone, Bitcoin gained more than 4%, with the market capitalization currently at more than $2.26 trillion. Much of Bitcoin’s rise this year has been attributed to large institutional flows into crypto investment products. Bitcoin ETFs, introduced earlier this year, have helped anchor the price above the $100,000 mark for more than 60 consecutive days. However, the second quarter brought another twist: public companies began buying Bitcoin at a faster pace than even the ETFs. Investors are also responding to signals from Donald Trump, who recently signed an executive order to establish a strategic reserve of cryptocurrencies.

Trump has added several crypto-friendly names to his administration, including former SEC Commissioner Paul Atkins and AI policy head David Sacks. In a parallel development, Trump Media & Technology Group has filed with the SEC to launch a crypto ETF that would invest in a basket of digital tokens, including Bitcoin. This regulatory support and the potential for new investment products have further fueled the optimism surrounding Bitcoin and other digital assets. The crypto rally isn’t limited to Bitcoin. Altcoins surged for a second consecutive day, reigniting hopes for broader market gains. Ether and Solana rose more than 2%, while Dogecoin and Cardano’s tokens gained over 5%. XRP and Litecoin also edged higher by around 3%. This rebound followed weeks of stagnant performance for most alternative tokens, despite the broader rise in Bitcoin prices. Analysts suggest that if Bitcoin sustains its momentum, capital may continue rotating into altcoins in the weeks ahead.

Data shows that Bitcoin ETFs posted $1.18 billion of inflows on Thursday alone. This has been recorded as the biggest amount of inflow seen since Trump’s election victory. The funds also posted $1.11 billion of inflows on November 11, 2024. BlackRock’s iShares IBIT led the charge with $448 million in net inflows, while Fidelity’s fund wasn’t far behind with $324 million. The incoming fund surge helped to push IBIT’s daily trading volume past $5 billion. It is nearly twice its normal volume, and the second-highest single-day activity across all 11 US Bitcoin ETFs since they launched in 2024. Ark’s ARKB saw $268 million flowing in, while Grayscale’s BTC ETF posted $81 million of inflow. Meanwhile, Grayscale’s GBTC is the only fund that is losing value, as it recorded $40.1 million of withdrawals.

Ethereum ETFs weren’t left out of the party as they saw $383.1 million in inflows, their second-highest ever. BlackRock’s ETHA ETF smashed its own record with a $300.9 million single-day intake. It traded over $800 million across two days. The surge in inflows was accompanied by Bitcoin reaching a new all-time high, surpassing $113,800. This rally was fueled by strong institutional inflows, a more favorable regulatory environment, and an increased appetite for risk across markets. The price gains followed a week of building momentum, with traders becoming increasingly optimistic about the potential benefits of digital assets from changing political winds.