Last week, cryptocurrency exchange-traded products (ETPs) experienced a surprising increase in response to Donald Trump’s executive order suggesting a US strategic crypto reserve. According to cryptocurrency investment business CoinShares, this move resulted in inflows of $1.9 billion.
The last week saw the third consecutive increase in inflows to global crypto ETPs, bringing the year-to-date total to $4.7 billion. While the $1.9 billion inflows were somewhat down from the previous week’s $2.2 billion, market sentiment remained strong.
Bitcoin dominates crypto inflows.
Bitcoin ETPs continued to lead the way, accounting for $1.6 billion of inflows last week. Year to date, Bitcoin-based products have received 92% of all crypto ETP inflows, totaling $4.4 billion. Bitcoin’s new all-time high of $109,000 on January 20 has cemented its status as the dominant force in the cryptocurrency sector. Short Bitcoin ETPs have also found traction, with $5.1 million in inflows last week.
Total assets under management (AUM) for all crypto ETPs have reached a staggering $171 billion, with Bitcoin products accounting for 82% of the total.
Altcoins and Institutional Players Have Mixed Results.
Ether-based ETPs saw further recovery, with $205 million in inflows last week, bringing their year-to-date total to $177 million. Other major inflows were Solana ($6.9 million), Chainlink ($6.6 million), and Polkadot ($2.6 million).
There has been a shift in the cryptocurrency landscape.
Trump’s executive order has not only stoked market euphoria, but it has also altered the course of the US cryptocurrency ecosystem. With no outflows from cryptocurrency investment products last week, the market reflects investors’ increased confidence and bullish momentum.
As the crypto market evolves, this rise in inflows demonstrates the growing attraction of digital assets as a foundation for modern financial strategy.
