Inflows to Digital Assets Surge to $2.2B Amid Trump Inauguration Buzz

Inflows into digital asset investment products surged to $2.2 billion last week, driven by the excitement surrounding Donald Trump’s inauguration as the 47th President of the United States. This marks the highest weekly inflows of the year, pushing year-to-date (YTD) totals to $2.8 billion. Rising cryptocurrency prices propelled total assets under management (AuM) to a record $171 billion, reflecting robust investor interest.

Global exchange-traded product (ETP) trading volumes also remained high at $21 billion, accounting for 34% of trusted exchange Bitcoin trading volumes.

Trump Euphoria Fuels Inflows

According to CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin dominated inflows, securing $1.9 billion last week. This brought its YTD inflows to $2.7 billion. Notably, despite Bitcoin’s price rally, there were minor outflows of $0.5 million from short positions, a departure from the usual trend of increased inflows during bullish periods.

Ethereum reversed its YTD outflows with inflows of $246 million, although it remains the weakest performer among major assets. Solana, in contrast, recorded a modest $2.5 million in inflows. XRP added $31 million, elevating its cumulative inflows since November 2024 to an impressive $484 million. Chainlink attracted $2.8 million, multi-asset products secured $2.7 million, and Stellar brought in $2.1 million. Litecoin and Cardano each reported $0.5 million in inflows.

Regionally, the United States led the charge with $2 billion, followed by Switzerland and Canada at $89 million and $13.4 million, respectively. Australia and Brazil contributed $5.3 million and $4.2 million, while Hong Kong recorded $0.5 million. However, Sweden and Germany experienced outflows of $14.5 million and $2.4 million, respectively.

Bitcoin Reaches New Milestone

Bitcoin surged past $109,000 ahead of Trump’s inauguration, fueling speculation about sustained price growth. Analysts predict prices could range between $145,000 and $249,000 in 2025, favorable U.S. monetary policies, and cyclical trends.

The incoming administration’s pro-crypto stance, coupled with expected Federal Reserve interest rate cuts, is anticipated to bolster risk assets like Bitcoin. Historical data suggests 2025, the final year of Bitcoin’s 4-year cycle, could witness significant price appreciation. CryptoQuant estimates $520 billion in new capital inflows during this period, measured via realized capitalization.

Institutional investors have already increased holdings by $127 billion in 2024, a sharp rise from past cycles where inflows jumped from $86 billion (2015–2018) to $440 billion by early 2025. These trends underscore the potential for continued robust demand and price appreciation for Bitcoin and other digital assets.

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