Zinger Key Points
- U.S. markets dominated the inflows, contributing $2 billion, followed by Switzerland ($89 million) and Canada ($13 million).
- CoinShares highlights growing institutional confidence, as total digital asset AuM reached a record $171 billion last week.
Digital asset investment products recorded $2.2 billion in inflows last week, driven by market optimism surrounding Donald Trump's inauguration.
What Happened: Total assets under management propelled to a record $171 billion, marking the largest weekly inflow of the year.
According to a Coinshares report, the significant surge in digital asset investment owes credit to investor enthusiasm for Trump's inauguration on Monday, Jan. 20.
Last week, inflows reached $2.2 billion, a yearly high, bringing year-to-date (YTD) inflows to $2.8 billion.
Total assets under management (AuM) for digital asset products also hit a new all-time high of $171 billion.
Bitcoin BTC/USD led the inflows, attracting $1.9 billion, which brings its YTD inflows to $2.7 billion.
"Bitcoin's performance remains the dominant force in the market, with substantial institutional interest driving these record inflows,” the report noted.
Ripple XRP/USD also saw notable gains, with $31 million in inflows last week. This brings its total inflows since mid-November 2024 to $484 million.
Ethereum ETH/USD, after weeks of outflows, managed to attract $246 million, though it remains one of the weaker performers in the YTD flow data.
Unusually, despite Bitcoin's price rally, short Bitcoin products saw minor outflows of $0.5 million, contrasting typical trends where short positions attract inflows during periods of positive price momentum.
Regionally, the U.S. accounted for the lion's share of inflows, contributing $2 billion.
Switzerland and Canada followed, with inflows of $89 million and $13 million, respectively.
Trading volumes on exchange-traded products (ETPs) globally surged to $21 billion last week, representing 34% of Bitcoin's trading volumes on trusted exchanges.
Why It Matters: President Trump’s pro-cryptocurrency stance bodes well for the sector.
"The Trump inauguration appears to have reinvigorated market sentiment, driving this unprecedented level of inflows. Investors are clearly optimistic about the administration's potential crypto-friendly policies," CoinShares Head of Research James Butterfill, said.
The report also highlighted the implications for broader markets, suggesting that this surge reflects growing institutional confidence in digital assets.
"We're seeing strong signals that institutional players are increasingly viewing digital assets as a vital component of their portfolios," Butterfill added.
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