Donald Trump’s sensational comeback has ignited an influx of crypto ETF inflows as the digital asset market experiences a rally that has seen Bitcoin approaching the $90,000 mark. The surprising new all-time highs could reflect the favourable policies and regulations investors are looking forward to from the pro-crypto presidency.
According to the latest Digital Asset Fund Flows report, crypto ETF inflows have pushed both Bitcoin ETF and Ether ETF inflows to an astounding $116 billion all-time high. Trump’s victory against Harris in the just-concluded presidential race has created a notable shift across the entire financial market. The stock and cryptocurrency markets recorded positive sentiments as the president-elect is seen as pro-business and pro-crypto.
The Crypto ETF Inflows Reaction to Pro-Crypto Presidency
According to the report, the Bitcoin ETF market recorded $1.79 billion in inflows over the past seven days, with the Ether ETF market registering over $157 million in inflows. Surprisingly, the other investment products comprising various assets registered $23.4 million in crypto ETF inflows, with Solana bringing in $3.9 million in inflows. Other products such as Cardano, Litecoin, and XRP registered $100,000, $200,000, and $500,000, respectively.
Several other investment products help expose traders to cryptocurrencies, which saw at least $300,000 worth of inflows even as products that short leading cryptocurrencies registered a total of $2.3 million of outflows. The report further stated that crypto exchanges Coinbase and Binance recorded a combined outflow of $9.3 billion worth of stablecoin associated with the Ethereum network following the election of a pro-crypto presidency.
Bitcoin ETF Took the Lion’s Share
Donald Trump’s support for the digital asset space during the campaigns and a pledge to preserve the US-held Bitcoin asset has been seen as the catalyst for renewed confidence and interest in the cryptocurrency market. Besides the unparalleled Bitcoin rally, the Bitcoin ETF market has experienced the strongest gains. As the rate of investment inflows grew by a record 11% during the last week, analysts concluded that Purpose Bitcoin ETF (BTCC.B) and CI Galaxy Bitcoin ETF (BTCX.B) were the greatest beneficiaries after recording 10.48% and 10.54%, respectively.
The high Bitcoin ETF inflows are a mirror of the enthusiasm that currently surrounds the entire cryptocurrency market as a result of the expectations of an incoming crypto-friendly administration. While the Bitcoin market may have taken a lion’s of the all-time-high ETF inflows, the world’s second-largest crypto by market cap experienced a 29% boost during the last week. The Ether ETF market also experience a significant boost, with the CI Galaxy Ethereum ETF (ETHX.B) and Purpose Ether ETF (ETHH.B) recording surges of 16.70% and 16.63%, respectively.
November Could Experience Increased Volatility
The exceeding investment inflows go hand in hand with the expectations of leading experts that November will continue to experience heightened volatility surrounding the just-ended elections and expected macroeconomic announcements. The positive developments surrounding the election of a largely pro-crypto Congress that most market players believe will herald positive developments regarding regulatory clarity are also a great catalyst for growth in this market. It would be interesting to watch new developments, such as the potential for enhanced institutional adoption and the consolidation of the DeFi sector.
Doubts may still linger about what changes the Trump 2.0 administration will bring, but there’s a lot of hope that Trump’s pro-crypto sentiments and interest in DeFi will help create regulatory clarity. Pundits expect that the new administration will create a climate that will enable investors to take advantage of the ongoing crypto ETF inflows, besides focusing on the DeFi sector that Trump has an interest in.
Conclusion
The increased levels of ETF inflows in the last week alone are evidence of the growing anticipation that Trump’s administration could create a supportive environment toward the emerging cryptocurrency sector. There’s heightened apprehension surrounding Trump’s pledge to make sweeping changes in the SEC’s leadership to foster a favourable regulatory approach. Trump’s election win has driven confidence throughout the crypto market, with ETF sectors also taking a portion of the spoils.
