The cryptocurrency market sees major inflows of $2.2B, with Bitcoin ETFs leading and Ethereum showing strong performance amid speculation of Trump’s future policies.
The cryptocurrency market has continued to attract fresh cash inflows, especially to the US-based digital assets investment products. The cryptocurrency industry has gained significant future growth stability, mostly bolstered by the strategic launch of TRUMP and MELANIA memecoins by Donald Trump’s family and team of Web3 developers.
With Bitcoin BTC $69 026 24h volatility: 1.1% Market cap: $1.38 T Vol. 24h: $39.19 B likely to be incorporated as a strategic asset reserve during the Trump administration, the emergence of FOMO traders has increased the odds of a major crypto bullish outlook in the near term. As more US states prepare to implement a strategic Bitcoin reserve, the chances that Trump will issue an executive order to safeguard the existing BTC stockpile has significantly surged.
Furthermore, Wall Street experts speculate that Trump could compel the Treasury Department to add Bitcoin to its Exchange Stabilization Fund (ESF). Additionally, the Trump administration could compel the Treasury Department to buy additional Bitcoins with the ESF.
Ethereum’s Investment Products Outshined Most Digital Assets In Cash Inflows Last Week
According to a weekly report by CoinShares, the digital assets investment products registered a net cash inflow of about $2.2 billion last week. The huge Euphoria of Trump’s 2nd inauguration triggered the highest weekly cash inflows year-to-date.
As expected, Bitcoin’s investment products, led by the US spot BTC ETFs, registered the highest weekly cash inflow among other digital assets of about $1.9 billion. In the altcoin sector, Ethereum’s investment product registered the highest weekly cash inflow of about $246 million, thus raising the total assets under management to about $18 billion.
Ripple Labs’ XRP registered the second-highest cash inflows of about $30.8 million last week, in the altcoin category. The rising popularity of XRP, among other digital assets, is majorly due to the expected end of the US SEC vs. Ripple Lana’s lawsuit.
Meanwhile, Solana’s investment product registered a net cash inflow of about $2.5 million last month, thus increasing its total assets under management to about $1.86 billion. Nonetheless, as CoinSpeaker pointed out, the launch of TRUMP and MELANIA memecoins on the Solana network will be a game changer in the coming months, especially amid the highly anticipated altseason.
Market Picture
The adoption of digital assets has been catalyzed by institutional investors in the past two years, led by MicroStrategy Inc. (NASDAQ: MSTR) and BlackRock Inc. (NYSE: BLK). Wall Street experts predict that Bitcoin’s valuation could overtake Gold’s in the next decade as nation-states shift focus to digital assets and Web3 protocols.
The notable success of El Salvador’s Bitcoin strategy, amid the expected implementation of the strategic BTC reserves in the United States, will trigger a similar move globally. Moreover, more nations have introduced clear crypto regulations to enable a seamless adoption of digital assets and blockchain technology to tackle macroeconomic uncertainties, including high levels of unemployment among skilled workers.
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