America is back at the top of the crypto food chain, reclaiming its position as the world’s crypto capital just in time for 2025.
This comes on the back of a wild combination of Donald Trump’s re-election and an explosion in demand for cryptocurrency products in the US like Bitcoin and its derivatives.
Trump’s promise to turn America into the beating heart of the global crypto market has already put it there. Bitcoin’s meteoric rise to over $100,000 this year didn’t happen. Demand in the US drives liquidity and sets global pricing standards.
The Biden administration’s restrictive crypto policies briefly thrust Asia into the spotlight last year, but Trump’s new pro-crypto approach has reversed that. Now, the United States is once again the center of gravity in the crypto world, bringing everything back into its orbit.
Bitcoin ETFs Dominate with Record Volumes
Bitcoin ETFs in the US have been a huge success. Launched in January, these funds have amassed over $500 billion in cumulative daily trading volume. They have also managed to track $36 billion in net inflows. BlackRock’s iShares Bitcoin Trust stands out, becoming one of the most successful ETFs ever launched.
The US Securities and Exchange Commission (SEC), once criticized for its slow approach, has finally made things right by approving spot Bitcoin ETFs. But the party doesn’t stop there. Under Trump, the range of ETFs available is set to grow beyond just Bitcoin and Ether.
America is getting ready for a full-blown crypto buffet, and Wall Street is already making room for more. Chicago-based CME Group is another big winner in all of this. It now leads in open interest in Bitcoin futures, leaving outside giants like Binance in the dust.
Open interest in Bitcoin and Ethereum futures has broken previous records this year, showing how much confidence the market has in U.S.-regulated platforms. The collapse of FTX in 2022 dealt a major blow to global liquidity, but Trump’s policies and the rise of these ETFs have helped the market recover.
It’s not just big institutions that are benefiting. Day traders are also reshaping the market. Bitcoin’s share of trading during business hours in the U.S. has jumped to 53%, up from 40% in 2021, according to data from Kaiko.
This is a huge change in trading patterns, with liquidity heavily seeded on US soil. Thomas Erdosi, head of products at CF Benchmarks, describes this as a sign of increased institutional involvement. It’s simply that more big players are getting into the game, and they’re doing it in the US.
With over $100 billion in assets under management across 12 Bitcoin ETFs, the numbers speak for themselves. However, not everyone is willing to dig in. A survey by Cerulli Associates found that 59% of financial advisors still avoid cryptocurrency conversations with their clients.
Bitcoin’s volatility, despite its impressive performance this year, remains a major concern. Prices are up nearly 120% year-to-date as of December 20, largely driven by Trump’s pro-crypto policies. But for cautious advisors, that volatility remains a tough pill to swallow.
For those who do invest, the advice is clear: keep your allocations small and rebalance often. Portfolio strategists recommend sticking to 2% to 3% of your total investments in Bitcoin funds. The idea is to avoid letting these highly volatile assets overwhelm the rest of your portfolio.
Regular rebalancing - at least monthly or quarterly - is very important when it comes to managing risk in such a volatile market.