The cryptocurrency market has achieved a remarkable milestone, recording its highest weekly inflow of the year with $2.2 billion. This surge, according to the latest CoinShares report, is attributed to heightened enthusiasm surrounding Donald Trump’s Jan. 20 inauguration. The growing optimism among investors has pushed total year-to-date inflows to $2.8 billion, solidifying the crypto market’s position as a dominant financial force.
This wave of investments has also propelled assets under management (AUM) to an all-time high of $171 billion, marking a significant achievement for the digital asset industry. Notably, Bitcoin played a pivotal role in this performance, as the leading cryptocurrency rallied nearly 20% over the past week, reaching an unprecedented all-time high near $110,000.
The market’s rally was further amplified by a sharp uptick in exchange-traded product (ETP) trading volumes, which soared to $21 billion last week. According to James Butterfill, head of research at CoinShares, this figure accounted for 34% of Bitcoin’s trading activity on major exchanges. Butterfill noted that this substantial increase reflects a surge in institutional participation and a broader embrace of cryptocurrency by mainstream financial entities.
Bitcoin Dominates While XRP Shines
Bitcoin continued to assert its dominance in the crypto market, securing $1.9 billion in inflows during the past week. This brought its total inflows for the year to $2.7 billion. The report emphasized the critical role of spot Bitcoin ETFs, with offerings from leading asset managers such as BlackRock, Fidelity, Ark Invest, and Bitwise collectively drawing over $2.1 billion in inflows. The optimistic inflows are widely regarded as a direct response to growing confidence in supportive regulatory frameworks expected under the incoming U.S. administration.
Interestingly, short-Bitcoin products also recorded modest inflows of $500,000, which is unusual during a bullish market trend. This indicates that, while the overall sentiment remains optimistic, some investors are hedging their bets or adopting caution as Bitcoin continues to climb.
Ethereum also made strides during this period, attracting $246 million in inflows. This marks a reversal from the outflows it had experienced earlier in the year. Despite this progress, Ethereum continues to underperform compared to other leading cryptocurrencies. Butterfill pointed out that Ethereum remains the weakest performer in terms of inflows in 2024, even though it significantly outpaced Solana last week, which brought in $2.5 million.
XRP, however, emerged as one of the strongest performers of the week, drawing $31 million in inflows. Since mid-November 2024, XRP has accumulated a total of $484 million in inflows, underlining its growing appeal to investors. Its performance reflects an increasing interest in alternative cryptocurrencies, particularly those with potential utility in cross-border payments and decentralized finance (DeFi).
Stellar, Altcoins Show Modest Gains
Following closely behind XRP, Stellar saw inflows of $2.1 million. While this figure pales in comparison to the inflows of Bitcoin and XRP, it underscores steady interest in the altcoin. Other cryptocurrencies showed minimal activity during the same period, as investor focus remained concentrated on major assets.
The robust inflows into the crypto market, combined with Bitcoin’s record-breaking performance and the increasing popularity of key altcoins, signal a period of significant transformation in the digital asset space. With the inauguration of Donald Trump sparking renewed optimism, market participants are hopeful for a favorable regulatory environment that could further drive institutional adoption and mainstream acceptance of cryptocurrencies.
As the crypto market continues to evolve, all eyes are on how the interplay between regulatory developments, institutional participation, and technological advancements will shape the future of digital assets in 2025 and beyond.
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