Home Crypto Events Crypto ETPs Receive $2.2B Boost Amid Trump Inauguration Excitement

Crypto ETPs Receive $2.2B Boost Amid Trump Inauguration Excitement

Crypto ETPs

A significant boost for the cryptocurrency market, exchange-traded products (ETPs) saw a record-breaking $2.2 billion in inflows last week. This surge comes in the wake of anticipation surrounding the inauguration of US President-elect Donald Trump. According to CoinShares, a leading investment firm tracking crypto funds, the excitement surrounding Trump’s impending presidency played a key role in driving these massive investments.

The inflows have brought the total assets under management in crypto ETPs to an all-time high of $171 billion. This marks a sharp recovery from a quieter second week of January, which had seen just $47 million in inflows. But with Bitcoin (BTC) rising 15% in value during the past week, investor enthusiasm for cryptocurrency has clearly surged once again.

Bitcoin ETPs Lead the Way

Bitcoin ETPs were the primary contributor to this massive surge, attracting $1.9 billion in fresh capital. This brings the total year-to-date (YTD) inflows into Bitcoin-based products to $2.7 billion. Bitcoin’s price momentum, combined with the optimism surrounding Trump’s pro-crypto stance, has clearly spurred investors to increase their exposure to Bitcoin. With more than a third of the total BTC trading volume coming from crypto ETPs, the market is responding strongly to the momentum in traditional financial vehicles for crypto exposure.

Despite the strong price movement in the market, CoinShares noted that there were still minor outflows from short-positioned ETPs, totaling $0.5 million. This is unusual since such outflows typically occur when markets experience a downturn or price consolidation rather than during a period of growth. However, the overall bullish sentiment far outweighed these minor outflows, highlighting the broader optimism within the market.

Ether ETPs See a Modest Boost

Ethereum-based ETPs, on the other hand, are still struggling compared to Bitcoin. While Ether (ETH)-backed products saw a positive flow of $246 million, this was not enough to offset the outflows seen earlier in the year. Ethereum ETPs are currently one of the poorer performers in the sector, with a total of $28 million in outflows for the year. However, the recent inflows indicate that there may still be room for growth, particularly if Ethereum can regain momentum after its recent performance slump.

XRP (Ripple), on the other hand, has demonstrated resilience, as XRP-based ETPs recorded $31 million in inflows last week alone. Since November 2024, XRP has attracted a total of $484 million in inflows, a sign that investor confidence is rebuilding in the wake of a challenging regulatory environment.

BlackRock and Grayscale Standout Performers

BlackRock’s iShares crypto exchange-traded funds (ETFs) have continued to perform well, bringing in an impressive $897 million in inflows last week. The success of BlackRock’s products reflects growing institutional interest in crypto exposure through established financial products. In contrast, Grayscale’s crypto ETFs continue to see outflows, totaling $145 million in the past week. This brings Grayscale’s total outflows for the year to $268 million, reflecting a shift in investor preferences toward more liquid and accessible ETP products.

Regional Trends: US Leads the Charge

Geographically, the United States remains the largest contributor to these inflows, with $2 billion of the total coming from the region. Europe also saw strong interest, with Switzerland and Canada contributing healthy amounts of $89 million and $13 million, respectively. This global interest indicates the increasing mainstream appeal of cryptocurrency as an asset class, supported by both retail and institutional investors.

Conclusion: Trump’s Impact on Crypto Market Sentiment

The $2.2 billion inflow into crypto ETPs reflects a wave of optimism in the market, largely driven by anticipation surrounding the inauguration of Donald Trump. His pro-crypto stance has renewed interest in cryptocurrency, particularly in Bitcoin, which has seen a significant boost in value. While Ethereum continues to face challenges, investor confidence in XRP and other altcoins is on the rise. With strong inflows and growing institutional participation, the crypto market looks set to continue its upward trajectory, driven by both retail and institutional demand.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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