Crypto ETF products see a $1.9 billion weekly inflow as Trump endorses the Bitcoin reserve idea

Crypto investment products experienced a massive influx of $1.9 billion in inflows last week, driven largely by increasing interest in Bitcoin-related products. This surge brings the year-to-date inflows to $4.8 billion, with Bitcoin continuing to dominate the market. According to CoinShares’ Jan. 27 report, Bitcoin attracted $1.6 billion in inflows last week, accounting for 92% of the total. Since the start of the year, Bitcoin has pulled in $4.4 billion in investments, signaling continued strong demand.

Short-Bitcoin ETFs also saw a small influx of $5.1 million, likely from traders positioning themselves for potential market corrections following Bitcoin’s recent surge. The U.S. led the charge with $1.7 billion in inflows, while Canada, Switzerland, and Germany also saw significant contributions at $31 million, $35 million, and $23 million, respectively.

Ethereum made a notable recovery with $205 million in inflows, helping offset its earlier struggles in the year. XRP also saw positive momentum, pulling in $18.5 million after reaching a new all-time high. Smaller altcoins like Solana ($6.9 million), Chainlink ($6.6 million), and Polkadot ($2.6 million) all contributed to the inflow totals. Remarkably, no digital asset investment products saw outflows, according to CoinShares research.

The surge in crypto ETF inflows comes amid a broader rise in trading volumes on centralized exchanges, which reached $25 billion, representing 37% of activity on trusted crypto platforms. James Butterfill, head of research at CoinShares, called it one of the most significant weeks in recent memory, largely driven by growing excitement around Bitcoin’s potential to be adopted as a strategic reserve asset.

However, despite the enthusiasm, there remains some tension in the crypto community regarding Bitcoin’s role as a reserve asset. Pierre Rochard, VP at Riot Platforms, accused Ripple of leading a lobbying campaign against the Strategic Bitcoin Reserve proposal. Rochard claims that Ripple is investing millions to block Bitcoin’s adoption as a reserve asset in favor of promoting XRP and state-backed digital currencies. Ripple CEO Brad Garlinghouse denied these allegations, asserting that the company’s efforts align with broader goals, including those of the Biden administration.