Since Donald Trump was elected president, nearly $10 billion has flowed into US exchange-traded funds that invest directly in Bitcoin (BTC-USD). This surge reflects a widespread belief that his support for the cryptocurrency sector signals a forthcoming market boom.
Following Election Day on November 5, a group of twelve funds from prominent issuers such as BlackRock Inc. and Fidelity Investments has seen net inflows nearing $9.9 billion. This surge has contributed to an increase in the total assets of these funds, now estimated at around $113 billion, as reported by Bloomberg data.
Last week, the president-elect appointed a proponent of digital assets to lead the US securities regulator and introduced the inaugural White House czar for artificial intelligence and cryptocurrency.
Trump has pledged to shift the Biden administration’s scepticism regarding digital assets towards a framework of supportive regulations, even endorsing the concept of a strategic national Bitcoin reserve. A Republican, once a sceptic of cryptocurrency, has shifted positions as the industry mobilised significant resources to support its agenda during the election campaign.
On December 5, Bitcoin reached a historic milestone, surpassing the $100,000 mark for the first time, as of 11:55 a.m. Monday in Singapore, the cryptocurrency was trading at $98,860. The token has achieved a six-week streak of gains through Sunday, marking the longest since the crypto frenzy of 2021.
Bitcoin experienced significant volatility just one day after reaching the notable six-figure milestone. The swings momentarily pushed the most significant digital asset down to approximately $92,000, a decline that raised concerns about the short-term outlook.
David Lawant, head of research at crypto prime broker FalconX, noted in a recent communication that a “sustained and decided” movement beyond the $100,000 mark may necessitate additional positive catalysts to come to fruition.
US regulators have approved spot-Ether ETFs, a collection of nine funds that attracted nearly $2 billion in net subscriptions following Trump’s election victory. Ether, the second-ranked cryptocurrency, has recently performed more than Bitcoin.