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Trump's victory triggered a crypto investment boom, with $2.2 billion pouring into the market

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Last week, digital asset investment products saw inflows of $2.2 billion, reflecting a broader market rally following Trump's victory in the US presidential election. During this period, digital asset markets saw peak inflows of $3 billion, driving total assets under management (AUM) to a record high of $138 billion. While Bitcoin (BTC) hit new highs, leading to outflows of around $866 million, net inflows still reached $2.2 billion. According to CoinShares data, total inflows since the September rate cut have reached $11.7 billion, and year-to-date inflows have reached $33.5 billion. CoinShares research head James Butterfill explained that the recent surge in inflows was driven by two key factors: "loose monetary policy and the Republican victory in the US election." In this context, BTC's dominance remains strong, with inflows of $1.48 billion. This growth in inflows is closely linked to the strong performance of US-based exchange-traded fund (ETF) products, which continue to attract significant attention from both retail and institutional traders, further driving market liquidity and confidence. According to CoinShares data, BlackRock's IBIT and Fidelity's FBTC attracted $2.1 billion and $40 million in inflows, respectively. On the other hand, the Ark 21 Shares fund saw outflows of $153 million, exceeding the $108 million outflows from Grayscale this week. Meanwhile, Bitcoin's (BTC) record-breaking price surge above $90,000 has attracted the attention of short traders, who invested $49 million in BTC short products. Additionally, the bullish market sentiment has also impacted investor interest in Ethereum (ETH), which saw inflows of $646 million, accounting for 5% of its assets under management. James Butterfill explained that this growth in inflows is related to the US election results and the proposed Beam Chain network upgrade, with changes in market sentiment significantly driving inflows into digital assets. Inflows for other assets, including Solana, XRP, and Cardano, were relatively smaller, at $24 million, $4.3 million, and $3.4 million, respectively.

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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