Trump’s Crypto Orders Spark Investment Surge

Global crypto funds managed by leading asset managers, including BlackRock, Fidelity, Grayscale, and ProShares, recorded net inflows of $1.9 billion last week, according to CoinShares. The surge followed President Donald Trump’s recent crypto-focused executive orders, which bolstered investor confidence in digital assets.

One of Trump’s orders created a Presidential Working Group on Digital Asset Markets to establish a federal regulatory framework for cryptocurrencies, including stablecoins, and assess the feasibility of a strategic national digital assets stockpile. Adding to the optimism, Trump also issued a full pardon for Ross Ulbricht, the founder of Silk Road, a figure tied to Bitcoin’s early history.

CoinShares’ Head of Research, James Butterfill, noted that no global digital asset investment products recorded net outflows last week, underscoring the widespread confidence these actions inspired.

U.S. and Bitcoin Funds Lead the Pack

Unsurprisingly, U.S.-based crypto funds dominated, accounting for $1.7 billion of the week’s net inflows. Globally, Bitcoin-based investment products were the biggest beneficiaries, attracting $1.6 billion, which represents 92% of all net inflows year-to-date. U.S. spot Bitcoin ETFs alone brought in $1.8 billion.

Ethereum-based funds also saw a strong rebound, recording $205 million in net inflows. Of this, U.S. spot Ethereum ETFs accounted for $139.4 million. XRP investment products continued their streak with $18.5 million in net inflows, bringing their total since mid-November to over $500 million.

Other notable contributors included funds focused on Solana ($6.9 million), Chainlink ($6.6 million), and Polkadot ($2.6 million).

Trading Volume and Market Activity

While price action remained relatively flat last week, trading volumes were robust, reaching $25 billion and accounting for 37% of activity on trusted crypto exchanges. This indicates sustained market engagement despite a lack of significant price movement.

However, the market experienced a sell-off early Monday, with Bitcoin falling below the $100,000 mark after reaching an all-time high of $109,000 on Jan. 20. The drop was accompanied by $850 million in liquidations, with Bitcoin now trading at $99,295, according to The Block’s Bitcoin Price Page.

Future Implications

Trump’s executive orders have reignited optimism in the crypto market, as evidenced by the influx of investment into digital asset funds. The establishment of a regulatory framework and the pardon of Ulbricht signal a shift in the government’s approach to crypto, potentially paving the way for broader adoption and institutional involvement.

Despite the recent sell-off, the strong inflows into Bitcoin, Ethereum, and other major cryptocurrencies highlight the market’s resilience and the growing confidence among investors. With regulatory clarity on the horizon, the crypto sector is poised for significant growth.