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Bitcoin and Ethereum ETFs Add $1.9 Billion During Trump’s Busy First Week

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Crypto investment products pulled in nearly $2 billion last week as shifting attitudes toward emerging technologies in Washington, D.C., sustained strong demand for digital assets.

The products, which include spot Bitcoin and Ethereum ETFs, saw $1.9 billion in inflows in the seven-day period through January 25, down 13% from the week prior, CoinShares data shows. That marks the second consecutive week inflows have hovered around $2 billion. 

Investors have so far poured $4.8 billion into digital asset investment products this year.

Interest in digital asset products peaked after President Donald Trump’s inauguration, according to James Butterfill, Head of Research at Coinshares, in an analyst note published Monday. 

Last week, the pro-crypto president signed his first crypto-focused executive order, creating a Presidential Working Group on Digital Asset Markets and advancing plans to explore a national Bitcoin reserve and other campaign pledges.

Meanwhile, federal regulators under Trump have signaled they will take a softer stance on virtual tokens and their issuers. 

“As a result of recent presidential executive orders that proposed the initiation of a strategic reserve asset in Bitcoin… trading volumes were high,” Butterfill said Monday in the note.

Bitcoin made the most significant gains last week, accounting for $1.6 billion, or more than 80%, of all inflows into digital asset-based products.

That’s despite a slump in the price of Bitcoin, which dipped below the $100,000 mark last week. The asset has since mounted a recovery just above $102,000.

More broadly, investors poured funds into various smaller market-cap tokens in the days following President Trump’s inauguration—although inflows to those tokens were slightly lower than those in the week before the ceremony. 

Ethereum-based funds made the second-largest gains last week, seeing $205 million in inflows, or roughly $40 million less in inflows during the week prior. 

Meanwhile, XRP products recorded $18.5 million last week, or nearly half the funds they pulled in during the previous seven-day period. Solana, Chainlink, and Polkadot offerings saw inflows last week of $6.9 million, $6.6 million, and $2.6 million, respectively.

Edited by Sebastian Sinclair

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SEC Approved Bitwise Bitcoin (BTC) and Ethereum (ETH) ETF

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The U.S. Securities and Exchange Commission approved another joint bitcoin and ether exchange-traded fund (ETF) Thursday, letting investors gain exposure to the two digital assets in one regulated financial product.

The SEC announced it had granted accelerated approval to Bitwise’s Bitcoin and Ethereum ETF, just over a month after approving similar products filed by Hashdex and Franklin Templeton. Hashdex’s Crypto Index ETF gives investors exposure to a basket of different cryptocurrencies, while Franklin Templeton said it would launch its product sometime in January.

Bitwise’s product, launched with the New York Stock Exchange, gives investors exposure to both spot bitcoin (BTC) and ethereum (ETH), weighted by market capitalization. NYSE Arca filed a 19b-4 form with the SEC last November.

Asset management firms have filed a flurry of crypto-related ETF applications in recent days, seeking to take advantage of new U.S. President Donald Trump’s administration’s promised lighter touch on regulatory issues.

Companies have filed for ETFs tracking the price of memecoins like Dogecoin (DOGE) and cryptocurrencies like Solana (SOL).

Earlier Thursday, Coinbase also filed to list and trade futures products tracking Solana and Hedera.

UPDATE (Jan. 31, 2025, 01:21 UTC): Adds additional detail.





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Bitcoin Above $105,000 as Litecoin Acknowledgment Spurs 14% Move

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Bitcoin traded around the $105,000 level in European morning hours Thursday as the year’s first U.S. FOMC meeting concluded with keeping rates steady, bumping sentiment across stock equities and crypto markets.

Jerome Powell-led FOMC maintained the policy rate steady at 4.25-4.50 per cent in the first decision of Trump’s presidency after reducing the rates for three straight meetings in 2024.

“We do not need to be in a hurry to adjust our policy stance,” Powell said in a post-policy press conference. The rate pause comes because officials seek further progress on inflation.

Interest rate hikes can make traditional investments more appealing, potentially reducing demand for bitcoin. Conversely, lower rates tend to boost bitcoin by making other investments less attractive. Higher rates might strengthen the dollar, impacting bitcoin’s price negatively, while lower rates could do the opposite.

BTC added nearly 3% in the past 24 hours after the FOMC meeting, reversing all losses from a Monday bloodbath that saw prices drop as much as 8% — a liquidatations-led flushout that was ripe for dip buying opportunities, as CoinDesk noted.

Cardano’s ADA, dogecoin (DOGE), xrp (XRP) and ether (ETH) mirrored BTC’s gains, rising as much as 3%. Solana’s SOL outperformed with a 4% rise. The broad-based CoinDesk 20 (CD20) added 2.8%.

Outside of majors, litecoin (LTC) surged 14% as the U.S. Securities and Exchange Commission (SEC) officially acknowledged the 19b-4 filing from Canary Capital for a spot Litecoin ETF, marking it as the first of its kind beyond BTC and ETH.

“First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC,” Bloomberg Intelligence analyst Eric Balchunas said on X. “In the comments from SEC on the S-1 and this filing is by far the furthest along checking all the boxes.”

A public comment period has now been initiated with a 240-day decision deadline for the SEC in about 240 days.





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Bitcoin Jumps to $105,000 as Fed Fears Fade

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Bitcoin (BTC) soared past the $105,000 mark on Wednesday as investor sentiment shifted following the Federal Reserve’s decision to pause its interest rate cuts. 

The world’s largest crypto, which initially dipped to $101,800 after the announcement, quickly rebounded, marking its highest level in three days.

During the Federal Open Market Committee meeting, the Fed left its benchmark interest rate unchanged, keeping it within the target range of 4.25% to 4.50%. 

Since President Donald Trump’s election victory in November, Bitcoin has gained over 50%, fueled partly by expectations of more crypto-friendly policies under his administration.

As the Federal Reserve continues to monitor economic data, traders remain cautious but optimistic about Bitcoin’s trajectory. 

“Immediate growth, as we’ve seen in previous bull cycles, may not follow as much of the optimism surrounding Trump’s stance on crypto has already been priced in following recent bullish trends,” Gracy Chen, CEO of Bitget, told Decrypt

The interest rate pause comes after three consecutive rate cuts since September, which slashed the federal funds rate by 100 basis points. 

Fed Chair Jerome Powell said that continued economic strength and persistent inflation during a post-meeting press conference influenced the decision to hold rates steady.

Powell noted while inflation has eased significantly from its 2022 peak of 9.1%, it remains at 2.9% annually, making further rate adjustments uncertain. 

The Fed chair’s remarks initially pushed Bitcoin and equities higher, with BTC crossing $103,000 before surging further.

Traditional markets showed a mixed response, with the Nasdaq falling 1.1% and the S&P 500 declining 0.9%. Gold remained in demand, holding steady above $2,750 in early Asian trading on Thursday.

Powell, when asked about digital assets, stated that U.S. banks are free to serve crypto customers as long as they manage associated risks. 

The Fed chair also hinted at the need for clearer regulations from Congress, which many industry participants viewed as a positive development.

The broader crypto market responded positively to the Fed’s decision, with Ethereum (ETH) and Solana (SOL) trading in narrow ranges. ETH is up 2% to $3,184, while SOL has gained 4.1% to $239, CoinGecko data shows.

Despite recent gains, some analysts warn that Bitcoin’s rally could face resistance.

The world’s largest crypto briefly hit a record $109,241 before President Trump’s inauguration in January but has since retraced.

“While some believe the crypto market will get significant attention from the new administration, it’s important to temper price expectations,” Chen said.

Edited by Sebastian Sinclair

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