The cryptocurrency market has experienced a significant increase in investment. The surge began after Donald Trump was sworn in as the 47th President of the United States.
During his first week in office, ETFs – especially Bitcoin (BTC) and Ethereum (ETH) collectively attracted an impressive $1.9 billion inflows. Trump’s first week has had a significant impact on crypto investment products. The surge sparked renewed confidence and interest in digital assets.
Bitcoin ETFs Lead the Charge
Earlier in January, there was volatility, and outflows raised concerns among investors. However, there was a major turnaround after Trump’s January 22, 2025 inauguration. According to data, Bitcoin ETFs accounted for approximately $1.6 billion of the total inflows in the digital asset sector.
This value represents a 92% share. The overall year-to-date inflows for Bitcoin now stand at $4.4 billion. On January 23 alone, BlackRock’s iShares Bitcoin Trust (IBIT) injected $661.9 million into the BTC ETFs.
During the same period, Ethereum ETFs also witnessed a positive trend. The total inflow of Ethereum products totaled $205 million. Notably, since November 2024, ETH ETFs have attracted over $5 billion in inflows.
Implication of These Inflows
The surge in ETF inflows has the potential to shift the crypto space. The revealed data suggests institutional investors increasingly view cryptocurrencies as viable long-term investments. Truly, people believe that crypto is the future.
According to market dynamics, the convincing performance of Bitcoin and Ethereum ETFs may encourage new entrants into the crypto space. This will allow them to gain exposure without managing the underlying cryptocurrencies themselves.
Traders might anticipate further price appreciation as cryptocurrencies gain traction as reserve assets. However, despite the optimism, challenges remain. The debate over Bitcoin’s role as a reserved asset continues.
For instance, Pierre Rochard from Riot Platforms has voiced concerns about lobbying efforts to undermine Bitcoin’s position in favor of alternatives like XRP.
As institutional interest grows and regulatory clarity improves, traders can expect increased volatility and opportunities within the digital asset space.
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