US Bitcoin and Ether ETFs See Surging Inflows Following Trump’s Crypto Endorsement
Excitement is brewing in the world of digital assets as exchange-traded funds focused on Bitcoin and Ether are experiencing a surge in popularity. In November, both Bitcoin and Ether ETFs saw record-breaking monthly net inflows, with $6.5 billion flowing into Bitcoin ETFs and $1.1 billion into Ether ETFs.
The interest in Ether, the second-largest cryptocurrency after Bitcoin, is on the rise, indicating a growing appetite for digital assets following President-elect Donald Trump’s victory on Nov. 5. While some may worry about a potential bubble, especially among retail investors, experts believe that the enthusiasm for cryptocurrencies is far from reaching its peak.
“We see a trend in crypto markets where Bitcoin initially drives price action, but the rising tide lifts all boats,” said Caroline Bowler, CEO of BTC Markets Pty. She noted that investor money continues to flow into digital-asset exchanges, suggesting that the activity in the crypto market is still growing.
Ether ETFs witnessed a significant influx of $333 million on Nov. 29, led by BlackRock Inc.’s iShares Ethereum Trust and Fidelity Investments’ Ethereum Fund. These big players, along with Grayscale Investments LLC, are key issuers of digital-asset portfolios, making a mark in the expanding crypto landscape.
Bitcoin, which recently approached the $100,000 mark, is currently trading at $97,880, while Ether is priced at $3,730. Despite Ether’s outperformance compared to Bitcoin post-Trump’s win, it has yet to reach new highs. Additionally, the XRP token has seen a sharp increase in value amid expectations of a regulatory shift under Trump’s administration.
Trump’s promise to lift regulatory burdens on the crypto industry and support the creation of a US strategic Bitcoin stockpile has been welcomed by many in the digital asset space. His change in stance from being a crypto skeptic to a supporter has bolstered the market, leading to a $1.2 trillion jump in market capitalization since he became president-elect.
As the market continues to evolve and new developments unfold, one thing is clear: the world of cryptocurrencies is entering a new chapter with the potential for growth and innovation on the horizon.
