BlackRock and Fidelity lead the surge as Trump’s tax bill reshapes investor sentiment
Bitcoin ETFs See Biggest One-Day Inflow in Over a Month
Bitcoin exchange-traded funds (ETFs) attracted $601.8 million in inflows on Thursday, marking their largest single-day surge since June 24. This bullish momentum is being driven by renewed investor optimism, triggered by shifting macroeconomic conditions and anticipation surrounding Donald Trump’s upcoming tax and spending bill.
BlackRock and Fidelity Dominate ETF Inflows
Leading the charge were BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC), which brought in $224.5 million and $237.1 million respectively, according to data from Farside Investors. Ark Invest’s ARKB also posted strong performance, adding $114.2 million in new capital.
Other funds like Grayscale’s GBTC and Franklin Templeton’s EZBC recorded no net flows during the same period, highlighting a clear preference among institutions for the newer, more cost-efficient ETF offerings.
Trump’s Tax Bill Spurs Risk-On Sentiment
The inflows come as markets brace for U.S. President Donald Trump’s “Big Beautiful Bill”, a sweeping tax and spending package set to be signed on Independence Day, Friday. The bill, which includes tax cuts and a higher debt ceiling, has prompted investors to rotate into risk assets like Bitcoin, anticipating looser financial conditions ahead.
“The expectation of looser liquidation conditions is driving ETF flows,” said Peter Chung, head of research at Presto Labs. “It seems risk-on trade is gaining traction, and for institutions, Bitcoin ETFs are the easiest way to gain exposure.”
Bitcoin Briefly Tops $110K Before Cooling
The price of Bitcoin briefly spiked above $110,000 on Thursday following stronger-than-expected U.S. employment data. According to CoinGecko, BTC is now hovering around $108,900, down 0.9% as markets digest the implications of the June jobs report.
The U.S. added 147,000 new jobs, beating the 110,000 forecast, while the unemployment rate dropped to 4.1%—slightly below expectations. Despite the hawkish data, equity markets rallied, signaling investor confidence in the long-term impact of fiscal expansion.
Liquidity Risks Loom Amid Treasury Refill
While the market’s short-term reaction has been positive, some analysts are cautious. Entrepreneur Arthur Hayes warned that the Treasury’s efforts to refill its General Account after the bill’s passage could trigger a temporary liquidity crunch, affecting both crypto and traditional markets.
Chung added that ETF flow data typically lags by a day or two, suggesting the $600 million spike likely reflects activity from July 2, prior to the bill’s official passage. However, “some investors may have been buying in full expectation of this development,” he said.
