Cryptocurrency-linked product investment inflow after US presidential election: $1.98 billion

The market's enthusiastic response to Donald Trump's victory in the election led to a surge in cryptocurrency investment inflows, reaching $1.98 billion. This marks the fifth consecutive week of increased inflows, bringing the total since the beginning of the year to an unprecedented $31.3 billion. The consecutive all-time highs in Bitcoin prices following the US presidential election results were an important factor behind the post-election investment surge. Post-US Election Crypto Inflows Approach $2 Billion The positive cryptocurrency investment inflows indicate increased investor confidence in digital assets, with trading volumes surging to $20 billion. Similarly, global assets under management (AuM) reached a new high of $116 billion. Bitcoin led the rally with inflows of nearly $1.8 billion after the election. Bullish price movements in major digital assets supported this. Bitcoin reached its initial peak immediately after the US presidential election, and with Donald Trump's electoral victory, the conservative economic stance returned to the White House, further enhancing Bitcoin's appeal among risk-seeking investors. "The positive macroeconomic environment and the significant change in the US political system are likely the main reasons for the supportive sentiment among investors," as stated in the latest CoinShares report. The growing interest in assets beyond traditional finance is a response to the Federal Reserve's inflation concerns and interest rate cuts. Since September, the Fed has adopted a dovish approach, and Bitcoin has attracted over $9 billion in inflows. The market's optimism about Trump's economic policies has triggered a shift towards risk-taking. This has amplified the demand for Bitcoin and other high-risk assets. Specifically, blockchain-related stocks saw inflows of $61 million, emphasizing investors' pursuit of diverse exposure to the growing cryptocurrency market. Many analysts expect Trump's administration to be more accommodating of financial innovation, which will encourage further growth in blockchain-based financial services and products. "DeFi will receive better regulatory treatment - allowing things like fee switches and network-based dividends without harassment," said the popular voice on social media platform X, Pahueg. During the post-election period, there was also notable inflow into Bitcoin ETFs, adding momentum to the overall growth of financial instruments. Spot Bitcoin ETFs provide direct exposure to BTC, and investors are increasingly seeking regulated pathways to invest in the leading cryptocurrency. Risk-on ETFs generally see growth in adventurous market environments, and the election results have bolstered these funds. These funds aim to achieve higher returns in volatile conditions. The inflows into these ETFs highlight investors' heightened risk appetite. As mainstream investors gain greater access to the digital asset market, cryptocurrency ETFs have become central to Bitcoin's recent surge. The inflows reflect high confidence in the long-term viability of Bitcoin. There is also growing belief that BTC can serve as a store of value amid economic uncertainty. This post-election period is marked by a dramatic influx of capital, hinting at a potential inflection point for the cryptocurrency market. The return of a conservative administration and supportive macroeconomic policies are creating a risk-taking environment favorable for digital asset growth. Record inflows into Bitcoin, Ethereum, altcoins, and related ETFs indicate investors' increasing willingness to explore alternative assets that can shield them from traditional market uncertainties. At the time of writing, Bitcoin is trading at $82,376, up nearly 4% since the Monday session open. As the king of cryptocurrencies, Bitcoin is poised to enter uncharted territory this week, buoyed by positive US economic data. "We expect a slightly higher CPI reading, but with the Fed already moving towards rate cuts, we expect Bitcoin to maintain its momentum. Retail sales are expected to show strength, aided by Amazon's recent sales event, suggesting a robust economy that can further support the cryptocurrency market. Overall, the macrodata is pointing to strong economic growth, which Bitcoin will positively embrace," said Marcus Thielen, founder and CEO of 10x Research, in an interview with BeInCrypto.