Bitcoin and Ethereum ETFs Add Nearly $2 Billion as Crypto Market Surges

It’s not fair Bitcoin itself experiencing immense demand and surprising price hikes over the past week – the American spot exchange-traded funds (ETFs) also saw huge inflows of capital after Donald Trump’s election victory.

Data from CoinShares shows that investors were hungry for crypto products last week and invested nearly $2 billion in investment funds offering exposure to digital assets.

Most of this money was focused on Bitcoin ETFs that the Securities and Exchange Commission (SEC) approved in January. The funds, managed by asset managers such as Fidelity, BlackRock and Grayscale, allow investors to buy stocks that track the price of the largest virtual coin and trade them on an exchange.

“A combination of a favorable macro environment and seismic shifts in the U.S. political system is likely the reason for such strong investor sentiment,” reads a report released Monday by CoinShares, referring to the election of Trump. earn last week.

He added that in all the funds he tracks, including in Europe and Asia, which give exposure to other major coins and tokens, the total amount of assets under management (AUM) reached a new all-time high. of 116 billion dollars.

Investors also wanted to invest in Ethereumthe second largest digital coin, the report notes: They injected $157 million into funds across the world last week, with the new US Ethereum ETFs receiving their biggest influxes since they started trading in July.

Bitcoin has arrived close to touch $85,000 per piece Monday morning, according to to CoinGecko data, setting a new all-time high price more than $11,000 higher than the previous mark crossed on Election Day.

It is currently trading at $84,375, up 23% over seven days. The asset has risen since Trump, a crypto supporter who is promised to help Bitcoin and digital asset industries, last week brand a shock victory in a tight race for the White House.

Trump, who served as president from 2017 to 2021 and will be inaugurated on January 20, 2025, was not only a favorite of the crypto industry but also of Wall Street, with major hedge fund managers betting on his election before the results from last week.

Edited by Andrew Hayward