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Bitcoin ETFs Surge as Trump’s Fed Threat Ignites Investor Rush

Crypto
Last updated: April 21, 2025 7:12 am
Crypto
Published April 21, 2025
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Bitcoin ETFs Surge as Trump’s Fed Threat Ignites Investor Rush

Bitcoin ETFs Witness Modest Gains as BTC Surges Past $85k

Spot Bitcoin ETFs in the U.S. experienced a slight uptick in weekly inflows as Bitcoin climbed above $85k. This rally was fueled by hopes of a softer Federal Reserve stance on interest rate cuts, following President Trump’s push to replace the Fed chair.

According to SoSoValue, 12 spot Bitcoin ETFs attracted $15.85 million in net inflows for the week. This ended a two-week outflow period that saw $886 million leave the funds. From April 14 to 17, the ETFs had a mixed performance: $1.47 million came in on Monday, $76.42 million on Tuesday, but a notable $169.87 million outflow on Wednesday. However, sentiment shifted on Thursday, with $107.83 million flowing back in.

BlackRock’s IBIT led the inflows with $186.5 million, followed by Bitwise’s BITB with $23.8 million. Other ETFs, including Grayscale’s mini BTC Trust, Invesco’s BTCO, Franklin’s EZBC, and VanEck’s HODL, added a combined $26.3 million. Though, Fidelity’s FBTC and ARK’s ARKB saw outflows of $174.9 million and $99.8 million, respectively.

Ethereum ETFs, however, continued to struggle, with $32.17 million in outflows, marking the eighth straight week of losses.

The market’s volatility was influenced by the tension between Trump and Fed Chair Powell. powell’s warning about potential inflation due to Trump’s tariffs led to Wednesday’s outflow. But on Thursday, Trump’s statement about Powell’s “termination” and rumors of replacing him with crypto-amiable Kevin Warsh boosted Bitcoin.

Bitcoin is now up 3% to over $87,600, recovering from earlier April losses. It’s just 20% away from its all-time high, with investor sentiment turning bullish. Analysts at geiger Capital noted that Bitcoin is starting to “decouple” from customary markets, hinting at sustained gains ahead.

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