On Monday, Bitcoin exchange-traded funds (ETFs), which mirror the price of Bitcoin, experienced their most significant surge since January as the cryptocurrency market rebounded from its annual lows.
Bitcoin ETFs had been facing challenges since President Trump assumed office, largely due to his unpredictable trade policies, which led investors to distance themselves from risky assets like cryptocurrencies. However, this trend reversed recently, with 12 Bitcoin ETFs collectively attracting $381 million in inflows on Monday, the largest influx since January 29 when they garnered $588 million, according to analytics platform SoSoValue.
These inflows indicate a shift in investor strategy following a period of panic selling after Trump’s comprehensive tariff announcement earlier in the month. Michele Crivelli, founder of digital asset issuer NexBridge, explained to Fortune that recent activity suggests a strategic adjustment in asset allocation, highlighting Bitcoin’s rising perception as a legitimate hedge akin to gold in volatile market conditions.
As Bitcoin’s value recovered from below $75,000 earlier this month, to a 3% increase on Tuesday surpassing $90,000, Bitcoin ETFs have gained momentum. This resurgence occurs concurrently with Trump’s continued focus on tariff enforcement and a unilateral conflict with Federal Reserve Chair Jerome Powell regarding interest rates. The White House has affirmed that the President is currently evaluating his authority to potentially remove Powell from his position.
Since January, the U.S. dollar’s value has declined as Trump’s tariff strategies prompted investors to retreat from American assets. His scrutiny of the Federal Reserve has ignited worries concerning the bank’s autonomy, pushing the dollar on Monday to its lowest valuation since 2022.
Several crypto analysts suggest that amidst this economic uncertainty, investors are turning to Bitcoin partly because it operates independently of any central bank or government intervention, thus being insulated from macroeconomic influences like tariffs and interest rates.
Thomas Erdösi, head of product at CF Benchmarks, a firm specializing in crypto data, informed Fortune that institutional investors are adjusting their strategies amid evolving U.S. regulatory stances towards constructive engagement, positioning Bitcoin as a primary beneficiary.
Although Monday’s inflows reflect a changing attitude toward cryptocurrencies amidst current economic volatility, the $381 million influx is not a record-setting figure for the asset category. Since their introduction last January, Bitcoin ETFs have achieved exceptional success, notably with BlackRock’s version amassing a record-breaking $50 billion within 11 months. Notably, in February, Bitcoin ETFs achieved a record $1 billion inflow in a single day.
This report was initially published on Fortune.com.
