Bitcoin Funds Dominate As Crypto Assets Hit $171B All-Time High

The cryptocurrency market is surging to record levels as assets under management (AUM) hit an all-time high of $171 billion.

This growth comes amidst heightened excitement around Donald Trump’s upcoming inauguration and growing optimism for pro-crypto policies.

A recent $2.2 billion inflow into cryptocurrency funds underscores the market’s momentum.

Bitcoin Leads Inflows as Confidence Grows

Last week, combined net inflows of cryptocurrency funds managed by top firms such as BlackRock, Grayscale, and Fidelity totaled $2.2 billion.

The weekly inflow is the highest so far this year, evoking market confidence.

Crypto prices and the speculation over supportive executive orders from the new administration are seen as the driving force behind the spike.

The United States accounted for the most inflows, with $2 billion going to digital asset funds.

Switzerland, with $89 million, and Canada, with $13 million, followed the basketball powerhouse in showing global interest.

These figures show how institutional portfolios are increasingly finding cryptocurrencies appealing.

Bitcoin was the big name on our inflow charts, attracting $1.9 billion in new money, while it also pushed its annual tally to $2.7 billion.

The re-upsizing shows growing confidence in Bitcoin as a strategic asset amid speculation around U.S. policy change.

Meanwhile, an uptick on this occasion was preceded by a rare $0.5 million outflow from short positions — indications of the upbeat market.

Ethereum, too, displayed some strength, as investors poured $246M, after losses it recently incurred.

While Ethereum inflows lag behind those of Bitcoin on an annualized basis, the journey can be appreciated as steady.

In tandem, with growth continuing, Solana was up a comparatively modest $2.5 million in new investments while continuing its recent upward trajectory.

XRP and Stellar also did well, just on a smaller scale. Raw XRP then saw $31 million in inflows, totaling $484 million since November 2024.

Meanwhile, comparatively quieter Stellar also recorded a $2.1 million increase as the broader altcoin space continues to demonstrate positive movement.

Institutional Support Strengthens Cryptocurrency Market Stability

Market expectations have been slowly growing, with some speculating about a U.S. Strategic Bitcoin Reserve (SBR).

The reserve would see the government hold Bitcoin in the same manner as it holds gold reserves.

We find that market indicators point toward a 55 percent probability of Trump issuing an SBR during his first 100 days.

It has fueled optimism, as Bitcoin hit a 24-hour-high above $109,000 Monday.

In an effort to make their case, analysts say that the potential impact of an SBR hasn’t yet been entirely priced into the market.

However, the prospect of a crypto-related executive order on the first day of Trump’s presidency fell to 37%.

This mainstream adoption of digital assets is evidenced by the inclusion of institutional giants BlackRock and Fidelity.

They bring credibility and enable the market to attract meaningful inflows from traditional investors.

However, participation has also been encouraged by the institutional backing of cryptocurrencies, which has also helped with the price stabilization of cryptocurrencies.

Investors are closely watching policy developments under the new administration’s cryptocurrency regulation.

Analysts said several executive orders designed to spur innovation while addressing matters such as security and taxation are anticipated.

Such steps could bolster the U.S. as an authority in blockchain technology and electronic money.

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