Crypto Funds See $1.9 Billion Inflows Following Trump's Executive Orders

Global crypto investment products experienced a significant uptick last week, attracting net inflows of $1.9 billion, according to a report by CoinShares. This surge is largely attributed to recent executive orders signed by President Donald Trump aimed at creating a regulatory framework for digital assets.

On Thursday, Trump established a "Presidential Working Group on Digital Asset Markets" to oversee the development of federal regulations, including those for stablecoins.

Additionally, Trump granted a full pardon to Ross Ulbricht, the founder of Silk Road, in a decision that has implications for Bitcoin's historical context.

CoinShares’ Head of Research James Butterfill highlighted that no digital asset investment products reported net outflows during this period, marking an unusual trend in the market. U.S.-based funds led the inflows, contributing $1.7 billion, while Switzerland, Canada, and Germany saw smaller gains of $35 million, $31 million, and $23 million, respectively.

Bitcoin-based funds dominated the inflows, totaling $1.6 billion. These funds have been the best performers this year, accounting for 92% of all net inflows year-to-date.

Spot Bitcoin exchange-traded funds (ETFs) in the U.S. represented $1.8 billion of the overall inflows. Ethereum-related products also rebounded, attracting $205 million, with U.S. spot Ethereum ETFs accounting for $139.4 million.

XRP investment products saw inflows of $18.5 million, continuing a streak that has exceeded $500 million since mid-November. Other cryptocurrencies like Solana and Chainlink also noted net inflows.

Despite the positive inflow data, the crypto market faced a downturn early Monday. Bitcoin fell below $100,000 after reaching a peak of approximately $109,000 on Jan. 20, amid trading volumes of $25 billion.