Crypto inflows surge as Bitcoin ETFs lead the way – Trump effect?

• Spot Bitcoin ETFs recorded a historic $3.13 billion weekly inflow, showcasing growing investor confidence.
• Altcoins like Solana, XRP, and Litecoin witnessed significant institutional inflows amid Bitcoin’s dominance.

The ripple effects of Donald Trump’s presidential election victory continue to make waves in the cryptocurrency market, fueling a sustained period of growth and activity.

Last week, the market reached a pivotal milestone as global investment products saw net inflows of approximately $3.13 billion.

This surge was largely attributed to heightened interest in U.S. spot Bitcoin [BTC] exchange-traded funds (ETFs), underscoring the market’s evolving dynamics.

Crypto inflows break record

According to CoinShares data, this development highlighted the growing investor confidence and the transformative impact of political and economic shifts on the crypto space.

As per the report, 

“Digital asset investment products saw the largest weekly inflows on record, totalling US$3.13bn, bringing total year-to-date inflows to a record $37bn.” 

This was for the week of the 18th–22nd of November, where spot Bitcoin ETFs garnered an impressive 102% increase from the previous week’s $1.67 billion, as reported by SoSoValue.

These gains also marked the seventh consecutive week of positive inflows, showcasing sustained momentum and growing investor enthusiasm. Additionally, the total assets under management (AUM) surged to an all-time high of $153 billion.

Amidst this rise, BlackRock’s IBIT continued to dominate the market, boasting $48.95 billion in net assets as of the 22nd of November, with cumulative inflows reaching $31.33 billion.

In contrast, Grayscale’s GBTC accounted for $21.61 billion in net assets but has faced outflows exceeding $20 billion since its inception. 

Source: blog.coinshares.com

Blackrock’s IBIT outshines

In fact, a deeper analysis revealed that a significant portion of last week’s inflows, approximately $2.05 billion, came from IBIT.

These Bitcoin funds led the charge, contributing $3 billion to the weekly total—a stark contrast to the modest $309 million first-year inflows for U.S. gold ETFs.

Thus, while Bitcoin’s price rally continued to attract interest from institutional and retail investors alike, it has also spurred $10 million in inflows into short-Bitcoin products.

This pushed the monthly figure for these products to $58 million—the highest level since August 2022.

Bitcoin is not alone

That being said, while Bitcoin dominated the inflow charts, altcoins too demonstrated their growing appeal among institutional investors.

For instance, Solana [SOL] led the altcoin pack with an impressive $16 million in net weekly inflows, outpacing Ethereum [ETH], which recorded $2.8 million.

Other notable performers included Ripple [XRP], Litecoin [LTC], and Chainlink [LINK], which garnered $15 million, $4.1 million, and $1.3 million, respectively.

Source: blog.coinshares.com

These figures reflect increasing confidence in the altcoin sector, fueled by strong price momentum and the expanding adoption of these digital assets across various use cases.

Needless to say, these developments clearly underscored the profound impact of the election on the crypto market.

However, it’s crucial to know that other factors may have also influenced the trends. James Butterfill, Head of Research at CoinShares noted, 

“This recent surge in activity appears to be driven by a combination of looser monetary policy and the Republican party’s clean sweep in the recent US elections.”