A group of a dozen U.S. exchange-traded funds investing in bitcoin are on track for record monthly inflows, buoyed by the cryptocurrency’s historic rally nearing $100,000 after President-elect Donald Trump embraced the sector.
Bitcoin-invested exchange-traded funds, including BlackRock Inc. and Fidelity Investments Inc., have drawn in $6.2 billion so far in November, data compiled by Bloomberg showed. The previous peak of $6 billion was reached in February amid investor euphoria over product launches at the start of the year.
Bitcoin was nearing the $100,000 mark for the first time a week ago, buoyed by Trump’s pledge to reverse the Biden administration’s crackdown on cryptocurrencies and create more industry-friendly regulators. The Republican president has also backed the creation of a U.S. strategic reserve of the native cryptocurrency.
“We will continue to see inflows into ETFs, especially under the Trump administration, as it is set to become easier for corporations and pension funds to own these assets,” said Josh Gilbert, market analyst at eToro.
