Compass Investments

– Inflows into U.S. spot bitcoin ETFs hit a record high in March

the 11th saw record inflows into U.S. spot bitcoin ETFs exceed £2 billion, a 60-month high.Trump’s pro-currency program and regulatory optimism boosted investor confidence in bitcoin-ETFs.

Bitcoin-Etf volume is approaching 100 million bitcoins, indicating growing acceptance and integration of financial markets.

May was a landmark month for Bitcoin spot Etf (exchange-traded fund), when net inflows rose to an unprecedented 6.62 billion in 11 months. The financial instrument, which provides institutional investors with indirect access to bitcoin (BTC), broke the previous record set earlier this year.

The optimism behind the inflows coincides with President-elect Donald Trump’s program to support cryptocurrencies, which increases investor confidence in digital assets and related financial products.

According to data compiled by Bloomberg, after spot bitcoin ETFs were approved on May 1, net inflows for these financial instruments totaled ¥11 billion in the month to June 62. Thus, the U.S. spot bitcoin ETF broke the ¥2 billion peak of ¥60 billion per month.

BTC spot ETFs broke monthly records for fund inflows. In November, 6.2 billion pounds were recorded. The previous high was 2 billion pounds in the 60th month, said Nate Geraci, president of the ETF shop

Donald Trump’s election victory was a major catalyst for the record inflows. His administration has promised to create a favorable environment for cryptocurrency regulation, including the repeal of restrictive policies adopted during the Biden era.

The announcement of plans to create strategic bitcoin reserves and the appointment of regulators to support cryptocurrencies have further bolstered market sentiment. Thanks to this, bitcoin is approaching the $100,000 mark.

this optimism extends to bitcoin ETFs, which shortly after the election received the largest inflow of funds in a day – $1.38 billion. Blackrock, a leader in the field, recorded inflows of more than $11 billion in 10 days, reflecting the huge interest from institutional investors seeking access to bitcoin through regulated channels.

In addition to record inflows, bitcoin ETFs have also witnessed a rapid accumulation of assets, totaling close to 1 million BTC. Analysts predict that these ETFs could surpass bitcoin creator Satoshi Nakamoto in terms of assets by the end of the year. Such achievements reinforce their market dominance.

BlackRock’s iShares Bitcoin Trust (IBIT) recently posted record sales volumes, outperforming gold-based ETFs. This change indicates a growing preference for digital assets among traditional investors. Other ETFs such as Fidelity and Bitwise also experienced significant inflows, further expanding bitcoin’s reach into mainstream finance.

the Trump administration is expected to open up additional opportunities for cryptocurrency-based financial products. Bitcoin Etf options trading has already appeared in the cryptocurrency market. The recent approval of the Options Clearing Corporation (OCC) has paved the way for bitcoin-ETF options trading to begin. These developments have provided investors with additional tools to hedge and predict Bitcoin’s price movement.

Matt Hougan, Chief Investment Officer at Bitwise, called these developments a potential game changer. Specifically, it will allow institutional investors to enter the cryptocurrency space with more confidence. This trend is consistent with the widespread acceptance of Bitcoin as a strategic asset by institutional investors amid favorable signals from regulators. A regulatory environment supportive of cryptocurrencies provides solid cover for institutional investors who have long wanted to invest in this area. This is a game changer, Hougan wrote on Website X.