#Trump 's promise to make America the cornerstone of the crypto sector has ignited a trading frenzy, in addition to a surge in activity triggered by the surprisingly successful launch of $BTC exchange-traded funds in the U.S. starting in early 2024, according to Bloomberg. Donald Trump's re-election and increased demand for the country's digital asset funds and derivatives contracts.
Trump’s promise to make America the cornerstone of the crypto sector has ignited a trading frenzy, in addition to a surge in activity triggered by the surprisingly successful launch of Bitcoin exchange-traded funds in the US starting in early 2024.
As a result, while the U.S. has become an increasingly important source of digital asset liquidity and benchmark pricing, for part of the past year Asia appeared to be the major beneficiary of the Biden administration’s crackdown on cryptocurrencies, which Trump has now rolled back.
According to data from Kaiko, the share of daily Bitcoin trading against the dollar during US hours has increased to around 53% from 40% in 2021. Thomas Erdösi, Head of Product at CF Benchmarks, said that increasing institutional participation is shifting “liquidity dominance” to America.
U.S. Bitcoin ETFs have recorded more than $500 billion in cumulative daily trading volume and about $36 billion in net inflows since launching in January. BlackRock Inc.’s iShares Bitcoin Trust is one of the most successful fund launches ever. Under the Trump administration, the stack of U.S. crypto ETFs is expected to expand beyond current offerings limited to Bitcoin and Ether.
Open interest — or outstanding contracts — for Bitcoin and Ether futures hosted by Chicago-based CME Group Inc. has reached all-time highs this year. CME now holds the top spot for Bitcoin futures open interest, while offshore platform Binance Holdings Ltd. was previously the market leader.
The collapse of the FTX exchange and its sister hedge fund Alameda Research in 2022 severely damaged liquidity. U.S. ETFs and Trump-fueled optimism helped turn things around. Crypto market depth — the ability to handle relatively large orders without unduly impacting prices — has returned to levels seen before the FTX crisis, closing much of the so-called Alameda gap, according to Kaiko data.
