Crypto ETF products see $1.9b weekly inflow as Trump backs Bitcoin reserve idea
Weekly inflows into crypto ETF products hit $1.9 billion, following Trump’s backing of Bitcoin reserve proposals.
Nearly $2 billion flowed into crypto investment products last week, boosting year-to-date inflows to $4.8 billion, CoinShares revealed in a Jan. 27 research report.
Bitcoin (BTC) continues to dominate, pulling in $1.6 billion last week, or 92% of the total inflows. Year-to-date, it has attracted $4.4 billion in investments. Short-Bitcoin ETFs also saw $5.1 million in inflows, CoinShares notes, adding that this inflow was likely from traders preparing for potential market pullbacks after Bitcoin’s recent surge.
The U.S. led with $1.7 billion in inflows. Canada pulled in $31 million, while Switzerland and Germany saw $35 million and $23 million, respectively, according to the data.
Ethereum (ETH) bounced back with $205 million in inflows after a tough start to the year. XRP (XRP) pulled in $18.5 million, keeping its momentum going after hitting a new all-time high last week. As for smaller altcoins, Solana (SOL) brought in $6.9 million, Chainlink (LINK) saw $6.6 million, and Polkadot (DOT) added $2.6 million. James Butterfill, head of research at CoinShares, pointed out a a surprising twist as “no digital asset investment products saw outflows last week.”
The surge in inflows comes shortly after trading volumes on centralized exchanges soared to $25 billion, making up 37% of activity on trusted crypto exchanges. Butterfill described the latest developments as one of the most significant weeks in recent memory, driven by the excitement surrounding Bitcoin’s potential as a strategic reserve asset.
There’s still debate over how smoothly Bitcoin will be adopted as a reserve asset. In late January, Pierre Rochard, VP at Riot Platforms, accused Ripple of leading a major lobbying push against the Strategic Bitcoin Reserve, claiming the company is spending millions to try to block it.
Rochard argued that Ripple is continuing to defend its XRP-based narrative and pushing for state-backed digital currencies. He also noted that Ripple has previously taken aim at Bitcoin mining under the Biden administration. Ripple CEO Brad Garlinghouse quickly responded though, stating that the company’s efforts align with the broader goals of the Biden administration.
