Exchange-traded funds (ETFs) that invest directly in Bitcoin (BTC-USD) and Ether (ETH-USD) are experiencing record-breaking demand, driven by President-elect Donald Trump’s pledge to loosen regulatory restrictions on the cryptocurrency sector. Bitcoin and Ether ETFs saw remarkable monthly inflows in November, reaching $6.5 billion and $1.1 billion, respectively. The daily subscription rate for Ether ETFs also hit an all-time high on Friday.
The surge in interest, particularly in Ether, the second-largest cryptocurrency by market capitalization, highlights the growing speculative demand for digital assets following Trump’s November 5 election win. While the current market activity has not reached the euphoric levels seen during the pandemic-era crypto bubble, there is clear optimism among investors, especially at the institutional level.
Caroline Bowler, CEO of BTC Markets Pty, noted, “We see a trend in crypto markets where Bitcoin initially drives price action, but the rising tide lifts all boats.” She emphasized that investor activity, particularly the flow of capital into digital asset exchanges, indicates that the market has not yet reached its peak.
On November 29, the nine Ether ETFs saw a net inflow of $333 million, fueled by prominent funds like BlackRock’s iShares Ethereum Trust and Fidelity Investments’ Ethereum Fund. BlackRock, Fidelity, and Grayscale Investments LLC are among the largest issuers of digital-asset portfolios.
As of 6:05 a.m. Monday in London, Bitcoin traded at $96,326, nearing its previous high of $100,000. Ether, which has outperformed Bitcoin since Trump’s election victory, was priced at $3,672 but has yet to reach new highs. In the options market, bullish sentiment is prevalent, with 77% of Ether open interest on Derive.xyz comprised of optimistic wagers, compared to 66% for Bitcoin, according to the platform’s founder, Nick Forster.
The XRP token has also surged, fueled by expectations that Trump will reverse a regulatory crackdown by the U.S. Securities and Exchange Commission (SEC) that has impacted the digital asset. Some investment firms are already exploring the possibility of launching XRP ETFs.
Trump has promised to dismantle the Biden administration’s digital-asset regulatory framework and replace it with a more crypto-friendly approach. He has also expressed support for establishing a U.S. strategic Bitcoin stockpile. This shift in stance from a former crypto skeptic reflects how the sector’s political influence has grown, with Trump embracing cryptocurrency in part due to its fundraising power during his election campaign.
Since Trump’s election victory, the cryptocurrency market has surged by approximately $1.2 trillion, according to CoinGecko data. This rally has helped to overshadow the painful collapse of the 2021 crypto boom, which revealed widespread fraud and risky practices within the industry.
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