Increase in Investments in Bitcoin ETFs Since the Election
Since Donald Trump’s election as president-elect, around $10 billion has poured into US exchange-traded funds (ETFs) that invest directly in Bitcoin. Growing hope that his pro-crypto position will spur notable expansion in the cryptocurrency market is reflected in this trend.
Since Election Day on November 5, 12 funds have drawn almost $9.9 billion in net inflows, greatly benefiting major issuers including BlackRock Inc. and Fidelity Investments. According to Bloomberg data, these inflows have increased the funds’ overall assets to an astounding $113 billion.
Crypto-Forward Scheduling Increase Market Trust
Market mood has been further strengthened by Trump’s appointments. He appointed the first-ever White House czar for cryptocurrency and artificial intelligence, and he appointed a proponent of digital assets to head the US Securities and Exchange Commission (SEC).
Trump has also promised to replace the Biden administration’s mistrust of digital assets with rules that are more favourable. Even the creation of a strategic national Bitcoin reserve is something he has supported. Trump, who previously criticised cryptocurrencies, has changed his stance in line with the industry’s heightened lobbying efforts.
Bitcoin Hits the $100,000 Mark
In keeping with its incredible six-week run of increases, Bitcoin crossed the $100,000 threshold for the first time on December 5. In Singapore, Bitcoin was trading at $98,860 on Monday morning. This rally is the longest winning run since the 2021 cryptocurrency boom.
However, after hitting the six-figure mark, Bitcoin temporarily dropped towards $92,000, dampening the enthusiasm. According to analysts, Bitcoin may need more encouraging news in order to sustain its momentum beyond $100,000.
Ether ETFs Take Centre Stage
Trump’s win has an effect that goes beyond Bitcoin. Additionally, nine funds in the spot-Ether ETF category have received approval from US regulators. Since the election, the net subscriptions for these ETFs have totalled around $2 billion, indicating an increase in investor interest in ether.
In recent weeks, Ether, the second-largest cryptocurrency, has outperformed Bitcoin, demonstrating its growing importance in the market for digital assets.
Prospects
Changes in regulation and significant inflows into digital asset funds are driving a surge of confidence in the bitcoin market. However, given that volatility is still a major feature of crypto assets, market observers stress the necessity of consistent positive catalysts to underpin additional advances.
