Donald Trump's return to the presidency is on it caused a wave of enthusiasm in the digital asset market, with institutional investors making bold bets on cryptocurrencies like XRP and Solana. This trend is highlighted by the CoinShares Digital Asset Fund Streaming Report of the Week, which reflects a historic influx of funds into the crypto market with total assets under management (AuM) now at an all-time high.
Trump Euphoria Stirs Currents That Break In
It's only been a few weeks into 2025, but investment funds linked to cryptocurrencies are already pulling in crazy numbers that are a glimpse of what's to come throughout the year. According to data from CoinShares, crypto asset investment funds saw inflows of $2.2 billion last week, the largest inflow so far this year. Specifically, this represents an increase of approximately 4,480% from the $48 million in net inflows received by the fund in the previous week.
Related Reading
The sharp increase in fund inflows was caused by euphoria surrounding the incoming administration of Donald Trump, which many intended to be favorable towards the crypto industry. This euphoria brought the total AuM in crypto currency to $171 billion at the end of last week, which is also the highest value ever.
No wonder, The famous maker was Bitcoin. In terms of flow, Bitcoin saw $1.9 billion in net inflows, bringing its YTD total to $2.7 billion in three weeks. Bitcoin also saw outflows of about $0.5 million from short positions, giving the bullish impression.
The outflow from short Bitcoin currencies is amazing, given they tend to get inflows during price rallies, as shown by flows in previous weeks. Trading volumes on exchange-traded products (ETPs) also increased to $21 billion, accounting for 34% of Bitcoin trading volume on trusted exchanges.
Big players bet on XRP and Solana
XRP and Solana are two amazing amazing performers among the general streams. These are not surprising, since headlines were flying around this week that the Trump administration is likely going to prioritize cryptocurrencies was created in the US as XRP and Solana.
Related Reading
XRP continues to receive a lot of attention, recording $31 million in inflows last week alone. As of mid-November 2024, XRP has accumulated an impressive $484 million in total inflows. This inflow sequence shows that XRP is receiving a greater appeal among institutional investors, which is laid out through its price action over the past few months. XRP now finds itself trading near an all-time high The highest value of the BOAT share in the last 24 hours was 3.34 US dollars.
The Solana fund also saw $2.5 million in inflows last week. This number is expected to increase significantly before the next report, given the success of the official Trump meme coin, which was launched on the Solana network.
Regionally, the United States dominated inflows with $2 billion, followed by Switzerland at $89 million and Canada at $13 million. Also, Ethereum saw inflows of $246 million last week to reverse earlier outflows. However, Ethereum is still the poorest performer among top funds in terms of fund flows this year with $28 million in outflows.
Featured image from Medium, chart from Tradingview.com
