President-elect Trump promised to free the cryptocurrency industry from regulatory shackles, and as a result, U.S. exchange-traded funds (ETFs) directly investing in Bitcoin and Ethereum are experiencing unprecedented popularity.
According to Bloomberg compiled data, Bitcoin ETFs and Ethereum ETFs set single-month net inflow records of $6.5 billion and $1.1 billion respectively in November. The daily subscription volume for the Ethereum ETF also reached an all-time high last Friday.
Ethereum is the largest token after Bitcoin, and interest in it indicates that speculation in cryptocurrencies is expanding following Trump's win in the U.S. election on November 5. From certain indicators, at least among retail investors, the enthusiasm for digital assets has not yet reached the frenzy of the COVID-19 pandemic bubble.
CEO of BTC Markets Pty Caroline Bowler said: "We see a trend in the cryptocurrency market where initially the price of Bitcoin rises, but other tokens also rise. She believes that, based on the flow of investor funds into digital asset exchanges, market activity has not yet peaked."
On November 29, driven by BlackRock Inc.'s iShares Ethereum Trust and Fidelity Investments' Ethereum Fund, nine Ethereum ETFs achieved a net inflow of $333 million. In terms of fund size, BlackRock, Fidelity, and cryptocurrency expert Grayscale Investments LLC are the largest issuers of digital asset portfolios.
Bitcoin's price approached $100,000 for the first time last month. Since Trump's victory, Ethereum has outperformed Bitcoin, but has not yet reached a new high.
Ripple (XRP) continued its parabolic surge due to expectations that Trump will eliminate the U.S. Securities and Exchange Commission (SEC) crackdown on the fourth largest digital asset. Some investment firms are seeking to launch Ripple ETFs.
Trump vowed to repeal the Biden administration's clampdown on digital assets and establish a friendly regulatory body. The Republican also supports the establishment of a U.S. Bitcoin strategic reserve. Trump was once skeptical about cryptocurrencies, but his attitude has changed as the cryptocurrency industry funded his campaign efforts.
According to CoinGecko, since Trump's election victory, the market value of cryptocurrencies has surged by about $1.2 trillion. This surge is diluting the painful memories of fraud and high-risk behavior exposed during the 2021 cryptocurrency boom.
Article reposted from: Jin Shi Data
