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Donald Trump’s return to the presidency is over It sparked a wave of enthusiasm In the digital assets market, where institutional investors are making bold bets on cryptocurrencies like XRP and Solana. This trend has been observed by CoinShares’ digital asset fund Weekly flow report, Which reveals a historic influx of funds into the cryptocurrency market, with total assets under management (AuM) now reaching a new all-time high.
Trump’s euphoria sparks record flows
We’re only a few weeks into 2025, but cryptocurrency-related investment funds are already pulling out crazy numbers that are a tease 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. Notably, this represents an increase of approximately 4,480% over the net inflows of $48 million that the funds received in the previous week.
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The huge increase in money flows was caused by the euphoria surrounding the incoming Donald Trump administration, which many are worried about. Expect it to be favourable Towards the crypto industry. This euphoria brought the total assets under management in crypto funds to $171 billion at the end of last week, also the highest value ever.
Unsurprisingly, Bitcoin was the standout performer. In terms of inflow, Bitcoin saw net inflows of $1.9 billion, bringing its year-to-date total to $2.7 billion in three weeks. Bitcoin also saw outflows of around $0.5 million from short positions, adding to bullish sentiment.
The outflow of short Bitcoin funds is quite surprising They tend to receive inflows During price spikes, as shown by flows in the previous weeks. Trading volumes on exchange-traded products (ETPs) also rose to $21 billion, representing 34% of Bitcoin trading volume on trusted exchanges.
Big players are betting heavily on XRP and Solana
XRP and Solana are two Surprise outstanding performance Amidst general flows. This is not surprising, as there have been headlines flying during the week of what is likely to be a Trump administration Going to prioritize cryptocurrencies They were created in the US like XRP and Solana.
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XRP continues to attract significant interest, recording $31 million in inflows in the past week alone. Since mid-November 2024, XRP has amassed a staggering $484 million in total inflows. This stream of inflows shows that XRP has Increasing attractiveness among institutional investors, Which has been carried forward by price action over the past few months. XRP now finds itself in circulation Near all-time highs From $3.40, having recently reached an intraday high of $3.34 over the past 24 hours.
Solana funds also saw inflows of $2.5 million last week. This number is It is expected to increase significantly In the following report, due to the success of the official Trump coin launched on the Solana network.
Regionally, the United States dominated inflows with $2 billion, followed by Switzerland with $89 million and Canada with $13 million. Also, Ethereum saw inflows of $246 million last week to reverse previous outflows. However, Ethereum is Still the poorest performer Among the main assets in terms of money inflows this year with outflows of $28 million.
Featured image from Medium, chart from Tradingview.com