Institutional Crypto Investments Surge During Presidential Orders

Following executive orders from former President Trump that targeted the cryptocurrency industry, institutional investors poured billions of dollars into digital asset products last week. In its most recent Digital Asset Fund Flows report, CoinShares, a prominent crypto asset management, emphasized this notable rise.

CoinShares reports that last week alone saw an astounding $1.9 billion in inflows into digital asset investment vehicles. Year-to-date (YTD) inflows reached $4.8 billion as a result of this spike. Recent executive orders suggesting the creation of Bitcoin as a strategic reserve asset were cited by CoinShares as the reason for the surge.

Despite the relatively stable price movements during the week, crypto trading activity remained robust. “Trading volumes were high at US$25bn for the week, comprising 37% of all trading volumes on trusted crypto exchanges,” the report noted.

U.S. Leads the Way; Bitcoin Dominates

The United States accounted for $1.7 billion of the $1.9 billion in global inflows, underscoring its dominant role in the crypto investment landscape. Other significant contributors included Canada ($31 million), Switzerland ($35 million), and Germany ($23 million).

With the bulk of inflows, Bitcoin (BTC) continued to be the preferred option for institutional investors. “Bitcoin saw inflows totaling US$1.6bn, bringing YTD inflows to US$4.4bn, accounting for 92% of all inflows in the digital asset sector,” said CoinShares.

Interest in altcoins also increased, with Ethereum (ETH) at the top of the pack. With $205 million in inflows, ETH products now have $177 million on the year-to-date total. With the exception of Cardano (ADA), the majority of other altcoins had a similar pattern, with very few outflows noted.

Strong investor confidence and purposeful government efforts have sparked a fresh interest in digital assets, which is indicative of the industry’s increasing institutional acceptability. With altcoins gaining traction and Bitcoin hitting new milestones, the cryptocurrency market seems set up for long-term growth.