As the countdown to Trump’s inauguration continues, the crypto market is showing no signs of slowing down. Trump, often referred to as the “crypto president,” has been a driving force behind the recent surge in the market. This has led to record highs in assets under management (AUM), with a recent influx of $2.2 billion into crypto funds adding to the excitement surrounding the upcoming inauguration.
A recent report by CoinShares revealed that major cryptocurrency funds managed by companies such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares saw a record $2.2 billion in net inflows last week, marking the highest inflow of the year so far. James Butterfill, the Head of Research at CoinShares, attributed these inflows to the anticipation surrounding Trump’s inauguration and the positive movements in crypto prices. This surge has propelled the total assets managed by these funds to an all-time high of $171 billion.
The majority of last week’s inflows into the cryptocurrency markets originated from the U.S., with $2 billion pouring into various digital assets. Switzerland and Canada also made significant contributions, injecting $89 million and $13 million respectively into the market.
Bitcoin emerged as a major recipient of new investments, securing $1.9 billion and bringing its annual total to $2.7 billion. Ethereum saw a reversal of previous losses with $246 million in inflows, while Solana experienced a modest increase of $2.5 million. XRP also received a significant influx of $31 million, pushing its total inflows since mid-November 2024 to $484 million. Stellar showed positive movement with a slight inflow of $2.1 million, while other altcoins had minimal to no new inflows.
Looking ahead, the market is anticipating several executive orders supporting cryptocurrencies in the early days of the new administration, including the establishment of a Bitcoin reserve. The likelihood of Trump signing an executive order to set up a Strategic Bitcoin Reserve (SBR) within his first 100 days has increased from 44% to 55% according to Polymarket. The SBR would involve the U.S. government acquiring and holding bitcoin as a strategic asset, similar to its historical use of gold as a reserve.
Despite bitcoin reaching over $109,000 in the past 24 hours, many analysts believe that the market has not fully priced in the potential creation of a Strategic Bitcoin Reserve. Additionally, Polymarket data suggests that the likelihood of the incoming president signing at least one cryptocurrency-related executive order on his first day has dropped from over 50% to 37% in the past 24 hours.
In conclusion, as Trump’s inauguration approaches, the crypto market continues to thrive, with investors eagerly awaiting the potential impact of his presidency on the digital asset space.