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The return of Donald Trump to the presidency has induced a wave of enthusiasm within the digital asset market, with institutional buyers making daring bets on cryptocurrencies like XRP and Solana. This pattern is famous by the CoinShares’ Digital Asset Fund Flows Weekly Report, which reveals a historic inflow of funds into the crypto market with complete belongings beneath administration (AuM) now at a brand new all-time excessive.
Trump Euphoria Sparks Document-Breaking Inflows
It has been just a few weeks into 2025, however funding funds tied to cryptocurrencies are already pulling in loopy numbers which are a tease of what’s to come back all year long. In line with information from CoinShares, crypto asset funding funds witnessed inflows of $2.2 billion final week, the most important influx to date this 12 months. Notably, this marks a rise of about 4,480% from the $48 million in web inflows that the funds acquired within the earlier week.
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The huge enhance in fund inflows was attributable to a euphoria surrounding Donald Trump’s incoming administration, which many are anticipating to be favorable in the direction of the crypto business. This euphoria drove the whole AuM in crypto funds to $171 billion on the finish of final week, which can be its highest worth ever.
Unsurprisingly, Bitcoin was the standout performer. When it comes to move, Bitcoin noticed $1.9 billion in web inflows, bringing its YTD complete to $2.7 billion in three weeks. Bitcoin additionally noticed outflows of about $0.5 million from quick positions, additional relaying the bullish sentiment.
The outflow from short-Bitcoin funds could be very shocking, given they have an inclination to obtain inflows throughout worth rallies, as proven by flows in earlier weeks. Buying and selling volumes on exchange-traded merchandise (ETPs) additionally soared to $21 billion, accounting for 34% of Bitcoin’s buying and selling quantity on trusted exchanges.
Massive Gamers Guess Massive On XRP And Solana
XRP and Solana are two shocking standout performers amidst the final inflows. These are usually not shocking, as there have been information headlines flying round throughout the week that the Trump administration is probably going going to prioritize cryptocurrencies created within the US like XRP and Solana.
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XRP continues to garner vital consideration, recording $31 million in inflows final week alone. Since mid-November 2024, XRP has accrued a formidable $484 million in complete inflows. This run of inflows exhibits that XRP is having a rising enchantment amongst institutional buyers, which is relayed by its worth motion over the previous few months. XRP now finds itself buying and selling near its all-time excessive of $3.40, having lately reached an intraday excessive of $3.34 previously 24 hours.
Solana’s funds additionally witnessed $2.5 million in inflows final week. This quantity is projected to extend considerably by the following report, given the success of the Official Trump meme coin, which was launched on the Solana community.
Regionally, america dominated inflows with $2 billion, adopted by Switzerland at $89 million and Canada at $13 million. Additionally, Ethereum noticed inflows of $246 million final week to reverse earlier outflows. Nonetheless, Ethereum is nonetheless the poorest performer amongst main belongings when it comes to fund flows this 12 months with $28 million in outflow.
Featured picture from Medium, chart from Tradingview.com