Digital asset saw a $2.2 billion inflows in the last week, bringing the overall inflows to a record high. The optimism around the victory of the Republic candidate Donald Trump has led to a lot of crypto enthusiasts make big trades.
According to a CoinShares report, inflows into digital asset investment products reached a record-breaking US$29.2 billion so far this year, with US$2.2 billion coming in last week.
For the second time in history, total assets under management (AUM) have surpassed $100 billion, matching levels recorded in early June 2024 at $102 billion, thanks to this and recent price increases.
At US$19.2 billion, trading volumes increased 67% week over week, accounting for 35% of all Bitcoin transactions on reliable exchanges.
Bitcoin Benefits From Price Rise Last Week
With inflows of US$2.2 billion last week, Bitcoin was essentially the only beneficiary, though recent price increases also led to US$8.9 million in inflows into short-bitcoin.
The modest inflows of US$9.5 million into Ethereum contrast sharply with the bullishness of Bitcoin or Solana, which saw an additional US$5.7 million in inflows last week. There were small inflows into a variety of altcoins, with Polkadot (US$0.67m) and Arbitrum (US$0.2m) standing out.
Also read: Will Bitcoin break its all time high?
US Sees Best Crypto Investments As Hopes Rise Over a Republic Victory
The report highlights that on a regional level Germany saw small inflows of US$5.1 million, while the US saw US$2.2 billion. In the first few days of last week, the euphoria surrounding the possibility of a Republican victory was the likely cause of these inflows.
US crypto investors are betting high on better crypto policies, with many hoping for more acceptance from the coming government. With Donald Trump portraying himself as a crypto-friendly candidate, optimism around his win has kept markets afloat.
The presidential campaign of Donald Trump is being closely watched by people across the United States. The cryptocurrency community seems to be hoping for greater market acceptance and reach if Trump is elected to a second term as president.
Previously, Donald Trump presented a daring plan to use cryptocurrency holdings to reduce the nation’s rapidly growing $35 trillion debt. The remark itself has made many hopeful that a Trump presidency will make crypto markets widely acceptable and free from regulatory crutches.
The plan also demonstrates Trump’s renewed interest in digital assets and his conviction that US innovation in the cryptocurrency sector is essential to the country’s competitiveness.
Additionally, the Bitcoin industry saw an opportunity to expand further when Trump declared that if reelected, he would ensure that the government never sold its Bitcoin holdings.