Bitcoin funds attracted $450 million amid changing macroeconomic expectations. Spot Bitcoin ETFs recorded the strongest inflow in over a month, indicating a resurgence of institutional demand.
Capital movement in the US Bitcoin ETF. Source: Farside Investors
On December 17, spot Bitcoin exchange-traded funds registered a net inflow of $457 million — the largest single-day figure in the past month. Institutional demand showed signs of new acceleration after a period of uncertainty.
Fidelity leads in fund inflows
The Bitcoin fund Wise Origin from Fidelity (FBTC) topped the list with a record daily inflow of about $391 million, accounting for a large portion of the total volume. BlackRock with its iShares Bitcoin Trust (IBIT) came in second with an inflow of about $111 million, according to data from Farside Investors.
Thanks to this influx, the total net inflow into American spot Bitcoin ETFs exceeded $57 billion, and total net assets rose above $112 billion. This is equivalent to about 6.5% of the total market capitalization of Bitcoin.
The recovery followed a turbulent period in November and early December, when flows fluctuated between modest inflows and sharp outflows of funds. The last time spot Bitcoin ETFs showed inflows above $450 million was on November 11, when funds attracted about $524 million in one day.
Trump plans to change the head of the Federal Reserve
On December 17, U.S. President Trump stated that he plans to appoint a new chair of the Federal Reserve who strongly supports lowering interest rates. Speaking in a national address timed with the first year of his second term, Trump said he would announce a successor to the current head of the Federal Reserve, Jerome Powell, at the beginning of next year. He added that all known finalists advocate for lower rates than current levels. Rate cuts are generally seen as a positive factor for risky assets such as cryptocurrencies.
On December 14, one of the candidates for the position of chair of the Federal Reserve, Kevin Hassett, stated that Trump's opinion 'will not carry any weight' in decisions about interest rates. Therefore, it is not surprising that at the top of Trump's candidate list is former Federal Reserve governor Kevin Warsh.
AI Opinion
From the perspective of macroeconomic cycles, the current situation resembles the period of 2020-2021 when institutional capital was actively entering Bitcoin against the backdrop of expectations for monetary policy easing. However, there is a significant difference: back then, the Federal Reserve was indeed pursuing a zero-rate policy, whereas now it is only about a potential change in the leadership of the regulator.
Historically, politicians' statements about their intention to influence the Federal Reserve have rarely led to significant changes in monetary policy due to the institutional independence of the central bank. The influx of $450 million may reflect not so much confidence in rate cuts as a short-term technical correction after a month of outflows. The critical question is whether institutional investors can maintain the current pace of inflows while real rates remain at elevated levels.
