Encouraged by the promise of a crypto-friendly administration, Bitcoin investors are putting money into cryptocurrency ETFs.
Since the election, crypto bulls have invested nearly $10 billion in a dozen US crypto funds managed by investment heavyweights such as Fidelity and BlackRock, according to Bloomberg. This influx of funds brings the combined assets of these funds to $113 billion.
Experts say the excitement surrounding Trump’s second term has already helped push bitcoin toward its Six figure high for the first time last week. Optimism among crypto investors rose after Trump announced the selection of Paul Atkins, a vocal supporter of digital assets, to replace crypto skeptic Gary Gensler as head of the Securities and Exchange Commission. Trump also announced on his social network Truth Social that he had appointed Silicon Valley investor David Sachs To become the “White House AI and Crypto Czar” – another boon to the industry.
Trump has taken a pro-cryptocurrency stance on the campaign trail, reversing his initial skepticism of bitcoin and other digital assets while aggressively courting Silicon Valley donors. After the elections Federal Election Commission files Show that tech investors donated more than $394 million to Trump’s campaign, the bulk of which came from Tesla CEO Elon Musk.
Musk’s involvement in the incoming Trump administration also suggests a more crypto-friendly environment. Even the “Department of Government Efficiency” initiative Musk co-founded with fellow entrepreneur and former Republican presidential candidate Vivek Ramaswamy has ties to crypto, with a tongue-in-cheek name that references the “meme coin” Dogecoin. .
Trump’s Bitcoin bullishness is such that he even flirted with the idea of a “Strategic Bitcoin Reserve“A move former Treasury Secretary Larry Summers said”.off one’s nuts“
Since the Dec. 5 peak, some of the friction has stopped: Bitcoin’s price has fallen to around $92,000 before mounting a recovery. Bloomberg cited a research note from David Lavant, head of research at crypto trading and brokerage firm FalconX, which says that crypto investors will need a long-term trend of good news to keep the price above $100,000.
Some crypto investment professionals remain optimistic that such a bump is coming. Federico Brockett, vice president and head of US business at crypto investment firm 21Shares, said in a research note that a “more favorable regulatory environment” and greater adoption of cryptocurrencies could propel bitcoin and other digital assets higher in 2025.
With a market cap of nearly $2 trillion — roughly the same as Google parent Alphabet — bitcoin is the world’s eighth-largest asset, surpassing even traditional alternative assets like silver, according to a crypto news platform. Guardian. Guru.
