Trump Inauguration Brings $2.2 Billion in Crypto Funds Flow, Creates New All-time High in AUM

As Trump prepares for his inauguration, the crypto market continues to speed up. Since his election victory, dubbed the “crypto president,” Trump has been fueling the marketplace for a number of months. This has led to document highs in a number of metrics, together with a current document excessive in belongings underneath administration (AUM). Moreover, the thrill surrounding the inauguration has led to an influx of $2.2 billion into crypto funds.

Trump begins a brand new period for crypto

In response to one report by CoinShares, main cryptocurrency funds managed by firms like BlackRock, Bitwise, Constancy, Grayscale, ProShares and 21Shares noticed document web inflows of $2.2 billion final week, the best of the yr to date.

James Butterfill, head of analysis at CoinShares, famous that these inflows had been pushed by the hype surrounding Trump’s upcoming inauguration and up to date constructive strikes in crypto costs. This enhance has introduced the overall belongings managed by these funds to a document excessive of $171 billion.

Additionally learn: Simply in: Donald Trump takes oath as forty seventh American president

Most of final week’s inflows into the cryptocurrency markets got here from the US, the place $2 billion was funneled into numerous digital belongings. Not far behind, Switzerland and Canada additionally made notable contributions, injecting $89 million and $13 million into the market respectively.

Specializing in particular person cryptocurrencies, Bitcoin was a significant recipient, bringing in $1.9 billion in new investments, bringing the annual complete to $2.7 billion. Notably, there was a small outflow of $0.5 million from brief positions, an uncommon development given the current value enhance.

Ethereum reversed earlier losses by attracting $246 million in inflows, though it nonetheless lags behind different cryptocurrencies when it comes to annual inflows. In the meantime, Solana noticed a modest enhance of $2.5 million.

XRP additionally noticed important inflows of $31 million final week, pushing inflows to $484 million since mid-November 2024. Though Stellar solely noticed a slight influx of $2.1 million, it nonetheless confirmed constructive motion. Different altcoins, however, skilled minimal to no new inflows.

Trump’s Bitcoin Reserve May Skyrocket Sentiment

The market now expects a number of govt orders in assist of cryptocurrencies within the early days of the brand new administration, together with the creation of a Bitcoin reserve. Polymarket signifies that the chances of Trump signing an govt order to arrange a Strategic Bitcoin Reserve (SBR) in his first 100 days have risen from 44% to 55% up to now day.

The SBR would see the US authorities purchase and maintain bitcoin as a strategic asset, much like the historic use of gold as a reserve.

Additionally learn: Why does TRUMP crash Memecoin?

Nonetheless, many analysts imagine that the market has not but absolutely taken under consideration the potential creation of a strategic Bitcoin reserve, although Bitcoin has reached $109,000 within the final 24 hours.

Moreover, Polymarket knowledge means that the probabilities of the brand new president signing a minimum of one cryptocurrency-related govt order on his first day have fallen from greater than 50% to 37% up to now 24 hours.