Almost $10 billion invested in US Bitcoin ETF

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Since Donald Trump became president a little over a month ago, about $10 billion has gone into the US Bitcoin spot ETFsshowing growing hope that his administration will support the cryptocurrency industry.

according to According to Bloomberg, a dozen funds from large issuers including BlackRock and Fidelity Investments have received about $9.9 billion in net inflows into their various Bitcoin ETFs since November 5, giving their total assets to about $113 billion.

Trump's signature move to Pro-Crypto regulation

Recent Trump elections, such as digital asset champion to lead the US Securities and Exchange Commission (SEC) and the creation of a czar in the White House for artificial intelligence and crypto, indicate a move towards a friendlier regulatory environment.

In particular, Trump has proposed the concept of establishing a national Bitcoin reserve, which has bipartisan support in Congress, with A pro-crypto senator Cynthia Lummis at the helm.

Bitcoin Rally complements microstrategy and peers

Bloomberg too notes that the positive sentiment around cryptocurrencies has led to a significant rebound among companies that have followed MicroStrategy's strategy of selling convertible bonds to finance Bitcoin purchases.

MicroStrategy alone sold $6.2 billion in turnover this year and plans to raise an additional $21 billion through fixed income offerings. Other companies, including MARA Holdings and Core Scientific, have received significant funding to support their Bitcoin acquisitions.

MicroStrategy stockMSTR, has risen 73% since the election of Donald Trump, while shares of MARA, Riot Platforms, and Core Scientific have risen 63%, 33%, and 30%, respectively.

This trend is very similar to Bitcoin's growth of almost 40% within the same period. With a market capitalization of nearly $2 trillion, Bitcoin's recent ascent has significantly boosted MicroStrategy's assets, which are now worth more than $41 billion.

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Recent crypto related terms conversion contracts stand out, especially since many are structured with zero coupons, allowing investors to engage in variable arbitrage.

Despite the high demand for these instruments, it seems that there is little concern about the expected decrease in the price of Bitcoin. Raj Imteaz, head of convertible derivatives and equity advisory at ICR Capital LLC, noted that larger players in the market feel obligated to issue convertible products to remain competitive.

“If your competitor has a huge war chest financed with very low coupons and you haven't tapped into the market, you're at a competitive disadvantage,” he said. You have to switch out to stay competitive within crypto.”