The frenzy around the inauguration of US President-elect, Donald Trump triggered a massive inflow into cryptocurrency exchange-traded products (ETPs) last week. According to a new report by CoinShares research lead, James Butterfill crypto ETPs witnessed a year-to-year inflow worth $2.2 billion in the last few days.
As per the research, last week, crypto ETPs recorded their highest ever weekly inflow since the start of the year. Butterfill attributed the massive spike to the euphoria surrounding the inauguration of Trump.
However, BTC ETPs contributed $1.9 billion to the total inflow of crypto ETPs recorded during the week. Consequently, the impressive performance propelled BTC ETPs’ YTD inflow to $2.7 billion.
The research stated how the total assets under management in crypto ETPs soared to a new all-time high of $171 billion last week. More so, During the week, the global trading volumes of crypto ETPs remained high at $21 billion.
Similarly, this figure, during the week, accounted for 34% of total bitcoin trading volumes on crypto exchanges. Despite the impressive performances of BTC ETPs, inflow into Ether exchange-traded products on the flip side is struggling to gain traction.
While recording a low $246 million inflow, Ether ETPs with the figure managed to correct the massive outflow the products suffered at the start of the year. Likewise, XRP ETPs received a $31 million inflow during the week.
Generally, Butterfill discussed how crypto ETPs failed to record significant inflow at the early stages of the year. For instance, during the second week of January, the report revealed that crypto ETPs only recorded a low inflow of $47 million.
How Trump Influenced the Price of Major Cryptocurrencies
Across the crypto market, the inauguration of Donald Trump is highly anticipated due to his pro-crypto support. Ahead of his inauguration, the president-elect launched his meme coin $TRUMP on January 17, 2024. In a post on Truth Social, Trump said the new cryptocurrency is celebrating “WINNING.”
In Less than 24 hours after the launch, $TRUMP rapidly soared by 300%. So far, the newly launched meme coin has recorded a 637.69% gain since its launching and currently has a $9.55 billion market capitalization.
Furthermore, $TRUMP also increased investors’ interest in Solana, its base network, supporting SOL to surge in price and trading volume. In addition, market data from DeFiLlama indicated that SOL’s total value locked (TVL) hit an all-time high of $12 billion.
Likewise, BTC as well attained a new all-time high of $109,114 on Sunday reflecting the growing confidence of investors around bitcoin. Trump’s promises of supporting the cryptocurrency market to new levels further help attract investors to the sector.