Trump’s Bitcoin Playbook: How It Sparked a $1.9 Billion Crypto ETF Wave

Crypto ETF products witnessed an inflow of $1.9 billion last week, marking a significant moment for cryptocurrency investment. The surge comes shortly after former U.S. President Donald Trump expressed support for Bitcoin as a strategic reserve asset. This development has sparked fresh optimism among investors and policymakers alike.

According to CoinShares’ latest report on January 27, the total year-to-date inflows into crypto ETF have now reached $4.8 billion. Bitcoin remains the top choice, accounting for 92% of last week’s inflows, with $1.6 billion directed toward the cryptocurrency. This substantial growth is reshaping market dynamics and increasing confidence in digital assets as long-term investments.

Bitcoin Dominates Inflows, Outshining Altcoins

Bitcoin remains the most dominant force in the crypto market. It attracted $1.6 billion in inflows last week, boosting its year-to-date investment total to $4.4 billion. Analysts believe that Bitcoin’s recent surge and its growing narrative as a strategic reserve asset have contributed to this dominance.

Short-Bitcoin ETFs also recorded $5.1 million in inflows, indicating that some investors are preparing for potential market pullbacks. CoinShares’ Head of Research, James Butterfill, noted,

“It’s one of the most significant weeks in recent memory, driven by Bitcoin’s potential to be recognized as a reserve asset.”

Ethereum, the second-largest cryptocurrency, saw inflows of $205 million, rebounding after a challenging start to the year. XRP followed suit, attracting $18.5 million in investments and maintaining its momentum after hitting an all-time high. Smaller altcoins like Solana, Chainlink, and Polkadot also reported gains, with inflows of $6.9 million, $6.6 million, and $2.6 million, respectively. Notably, no digital asset investment products recorded outflows, signaling strong investor confidence.

Trump’s Bitcoin Endorsement Boosts Market Sentiment

The surge in crypto ETF inflows can be linked to Trump’s recent comments supporting Bitcoin as a reserve asset. His endorsement reignited discussions about Bitcoin’s role in national and global financial systems. Trading volumes on centralized exchanges soared to $25 billion, accounting for 37% of activity on trusted platforms, further reflecting the market’s enthusiasm.

However, the idea of Bitcoin as a reserve asset remains divisive. Pierre Rochard, Vice President at Riot Platforms, accused Ripple of lobbying against the Strategic Bitcoin Reserve. Rochard alleged that Ripple has spent millions to promote state-backed digital currencies over Bitcoin. In response, Ripple CEO Brad Garlinghouse stated that the company’s actions align with the Biden administration’s goals, dismissing claims of opposing Bitcoin mining initiatives.

Despite these debates, investor interest in Bitcoin continues to grow. The U.S. led last week’s inflows with $1.7 billion, while Canada, Switzerland, and Germany contributed $31 million, $35 million, and $23 million, respectively.

Ethereum, XRP, and Altcoins See Renewed Interest

While Bitcoin dominated the inflows, Ethereum and XRP also gained significant attention. Ethereum bounced back with $205 million in inflows, showing resilience after a slow start to the year. XRP’s $18.5 million inflow indicates continued optimism following its recent price surge.

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The decentralized finance (DeFi) and altcoin sectors also contributed to the positive trend. Solana, Chainlink, and Polkadot collectively added $16.1 million in investments. Analysts believe that the broader market excitement has spilled over into these assets, creating opportunities for diversification within crypto investment portfolios.

James Butterfill highlighted the broader implications, stating,

“The growing inflows into Ethereum and smaller altcoins signify increasing confidence in the crypto ecosystem as a whole.”

Conclusion: A Promising Start to 2025 for Crypto ETF

The $1.9 billion weekly inflow into crypto ETF products underscores growing investor confidence in digital assets. Trump’s endorsement of Bitcoin as a strategic reserve asset has added momentum to the market, while Ethereum, XRP, and altcoins are gaining traction. With total inflows reaching $4.8 billion year-to-date, 2025 has started on a strong note for the crypto industry.

As debates over Bitcoin’s reserve status continue, the market remains optimistic. The increasing adoption of crypto ETF and the dominance of Bitcoin suggests that digital assets are becoming an integral part of global finance. Keep following The Bit Journal and keep an eye on Crypto ETF.

FAQs

1. What led to the $1.9 billion weekly inflow into crypto ETF?

The inflow was driven by Bitcoin’s dominance, Trump’s endorsement of Bitcoin as a reserve asset, and renewed interest in Ethereum, XRP, and altcoins.

2. Why is Bitcoin seen as a strategic reserve asset?

Bitcoin is considered a potential reserve asset due to its limited supply, decentralized nature, and growing global adoption, making it attractive to investors and policymakers.

3. How did Ethereum and XRP perform last week?

Ethereum attracted $205 million in inflows, while XRP saw $18.5 million, maintaining momentum after hitting an all-time high.

4. What is the significance of Trump’s support for Bitcoin?

Trump’s endorsement has reignited debates about Bitcoin’s role in financial systems, boosting market sentiment and attracting more investors to crypto ETF.

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