Almost US$10 billion was invested in funds that invest directly in Bitcointraded on a stock exchange in the USA, since Donald Trump became president-elect. This is a bet that Trump’s support for the cryptocurrencies signals a boom for the market.
A dozen issuer funds, including BlackRock and Fidelity Investments, have attracted about $9.9 billion in net inflows since Election Day on Nov. 5, which has helped bring the group’s total assets to about $ 113 billion, according to data compiled by Bloomberg.
READ MORE: Trump administration: what could really change in the crypto market with the Republican in power
Last week, the president-elect picked a digital asset advocate to be the next head of the U.S. securities regulator, the SEC, and named the White House’s first czar for artificial intelligence and cryptocurrencies.
Trump has promised to replace the Biden administration’s skepticism toward digital assets with supportive rules and has even backed the idea of a national Bitcoin strategic reserve. The Republican, who was previously skeptical of cryptocurrencies, changed his stance when the industry released a war chest in the election campaign to promote its interests.
Bitcoin surpassed US$100,000 for the first time on December 5 and was trading at US$96,983 at 5pm this Monday (9). The token’s six-week winning streak through Sunday is the longest of its kind since the 2021 cryptocurrency frenzy.
Volatility gripped Bitcoin the day after the token reached an all-time six-figure level. The swings briefly took the biggest digital asset to around $92,000, a drop that sowed some caution about the immediate outlook.
A “sustained and decisive” push beyond $100,000 may require more positive factors to materialize, David Lawant, head of research at cryptocurrency exchange FalconX, wrote in a note.
US regulators also allowed Ether spot ETFs, a group of nine funds that attracted nearly $2 billion in net subscriptions following Trump’s election victory. Ether, the second largest token, has been outperforming Bitcoin recently.
