US-based exchange-traded funds (ETFs) focusing on Bitcoin and Ether have witnessed record-breaking inflows, fueled by President-elect Donald Trump’s promise to loosen regulations in the cryptocurrency sector.
According to Bloomberg data, Bitcoin ETFs registered an unprecedented $6.5 billion in net inflows in November, while Ether ETFs recorded $1.1 billion during the same period. Ether ETFs saw a particularly strong performance, with daily subscriptions hitting an all-time high last Friday.
The heightened interest in Ether, the second-largest cryptocurrency by market value, signals growing speculative enthusiasm following Trump’s victory in the US presidential election on November 5. However, some analysts caution that retail investors’ fervor hasn’t yet matched the intensity of the cryptocurrency mania during the pandemic-era bubble.
“We see a trend in crypto markets where Bitcoin initially drives price action, but the rising tide lifts all boats,” observed Caroline Bowler, CEO of BTC Markets Pty. She added that current activity levels indicate the market has not yet reached its peak, pointing to increased investor inflows into digital-asset exchanges.
November 29 marked a significant milestone for Ether ETFs, with nine funds collectively bringing in $333 million in net inflows. BlackRock’s iShares Ethereum Trust and Fidelity Investments’ Ethereum Fund were major contributors to this surge. Alongside Grayscale Investments LLC, these firms lead the market in managing digital asset portfolios.
Bitcoin, which approached the $100,000 mark for the first time last month, was trading at $96,326 as of Monday morning in London, while Ether was priced at $3,672. Ether has outpaced Bitcoin in performance since Trump’s electoral win, although it has yet to reach new record highs.
In the derivatives market, bullish sentiment remains robust. Around 77% of Ether open interest on trading platform Derive.xyz consists of optimistic bets, compared to 66% for Bitcoin, according to Nick Forster, the platform’s founder. Open interest reflects the total number of outstanding options contracts.
XRP, another prominent cryptocurrency, has seen a meteoric rise amid hopes that Trump’s administration will reverse Securities and Exchange Commission actions that previously weighed on its value. Some investment firms are now eyeing the launch of XRP-focused ETFs.
Trump has pledged to dismantle the digital-asset regulations implemented by the Biden administration and install crypto-friendly regulators. He also supports creating a US strategic Bitcoin reserve. This represents a significant shift from his earlier skepticism toward cryptocurrencies, a pivot driven partly by the sector’s financial support during his campaign.
Since Trump’s election victory, the cryptocurrency market has gained approximately $1.2 trillion, according to Coingecko data. This resurgence is helping investors move past the painful bust of 2021, which exposed fraud and excessive risk-taking in the industry.
