Global Crypto Funds Soar to $1.9B on Strategic Bitcoin Adoption

1 week ago 14

January 28, 2025 by Mishal Ali

Key Takeaways:

Global crypto funds saw $1.9 billion in net inflows last week, driven by U.S. executive orders favoring crypto.
Bitcoin led the inflows, with $1.6 billion, accounting for 92% of the total.
Altcoins like Ethereum, XRP, Solana, and Chainlink also gained traction with notable investments.

Global crypto investment funds experienced a substantial boost last week, with $1.9 billion in net inflows recorded, according to CoinShares. The surge was largely attributed to a set of executive orders by former U.S. President Donald Trump that had proposed setting Bitcoin up as a strategic reserve asset. The move certainly seems to have given the market sentiment a serious boost, even in light of relatively stagnant price action.

The larger market of digital assets had more intense trading, too, reaching $25 billion of volume-37% of all trades on trusted exchanges. Crypto funds inflows are now at $4.8 billion year-to-date, a fact that testifies to the rising institutional interest in digital assets.

Regionally, the top inflows came from the United States, with $1.7 billion inflows; Canada followed with $31 million, Switzerland with $35 million, and Germany with $23 million. This is, therefore, a testament of the global appetite for blockchain investments in the face of benevolent regulatory news.

Bitcoin Leads, Altcoins Rebound

Unsurprisingly, Bitcoin dominated the inflows landscape, recording $1.6 billion in inflows in the last week, bringing its year-to-date total to $4.4 billion and 92 percent of all digital asset fund flows.

As investors digested the fresh highs earlier this month coming into the tail end of his inauguration, long-Bitcoin ETFs still remain popular whilst it also seemingly has re-started short-Bitcoin ETF interests, which attract inflows of $5.1 million.

Ethereum also came in strong with inflows of $205 million after weeks of subdued activity. XRP, despite being mired in a host of legal challenges, managed to attract $18.5 million, reflecting investor confidence in the token’s long-term prospects.

Interestingly, no digital asset funds reported outflows during the week, suggesting broad-based positive sentiment for the market. Solana, Chainlink, and Polkadot were other smaller assets to report relatively promising growth, at $6.9 million, $6.6 million, and $2.6 million, respectively.

A Growing Trend of Institutional Trust In Crypto

The report says that the institutional attitude towards cryptocurrencies has changed dramatically. This might be a catalyst for greater use and investment: the potential use of Bitcoin as a strategic reserve asset of the US government. Much emphasis has been placed on regulatory clarity and positive governmental engagement in the crypto sector, setting the pace for sustained growth in 2025.

The future indeed looks upbeat with Bitcoin leading from the front and altcoins rebounding. Global inflows and growing trading volumes strengthen the narrative of digital assets finding their place in diversified investment portfolios.

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