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January 27, 2025Crypto ETPs See Strong Inflows as Trump’s Strategic Crypto Reserve Proposal Boosts Market Sentiment
Cryptocurrency exchange-traded products (ETPs) saw another week of strong inflows, continuing a positive trend that has been building over the past month. According to data from crypto investment firm CoinShares, the latest surge of $1.9 billion in crypto ETP investments was likely spurred by U.S. President Donald Trump’s executive order proposing the creation of a strategic crypto reserve.
Trump’s Executive Order Drives $1.9 Billion in Crypto ETP Inflows
On January 27, 2025, CoinShares reported that crypto ETPs received a fresh $1.9 billion in inflows last week, marking the third consecutive week of strong investment. This brings the total year-to-date (YTD) inflows to a substantial $4.7 billion.
The timing of this injection suggests that Trump’s executive order, which proposes the establishment of a U.S. crypto reserve, acted as a key catalyst for renewed investor confidence in cryptocurrency-based financial products. While the inflows were slightly lower than the previous week’s $2.2 billion, the overall trend remains highly positive.
Bitcoin remains the dominant player in the crypto ETP market, accounting for a massive 92% of all inflows so far this year. Bitcoin-based crypto ETPs saw $1.6 billion in new investments last week, bringing the total YTD inflows for Bitcoin ETPs to $4.4 billion. This sharp focus on Bitcoin reflects growing interest in the digital asset, especially after it set a new all-time high of over $109,000 on January 20, 2025.
Interestingly, with Bitcoin hitting these new highs, short Bitcoin ETPs saw a resurgence in investor interest, attracting $5.1 million in inflows last week, according to CoinShares’ research head James Butterfill.
Altcoins: Ether, XRP, and Solana See Modest Inflows
Although Bitcoin continues to capture the lion’s share of investments, other digital assets are also experiencing positive flows. Ether-based ETPs saw $205 million in inflows last week, marking a continued recovery despite early-year selling. YTD, Ether ETPs have garnered $177 million in new investments.
XRP-based ETPs, on the other hand, saw more modest inflows of $18.5 million, a 40% decrease from the previous week. Among other altcoins, Solana (SOL), Chainlink (LINK), and Polkadot (DOT) experienced notable inflows, with $6.9 million, $6.6 million, and $2.6 million, respectively.
Surprisingly, despite fluctuations in individual altcoins, no digital asset investment products saw outflows last week, which Butterfill described as an unusual occurrence.
Grayscale Faces Continued Outflows, While BlackRock Leads Inflows
As one of the largest players in the crypto ETP market, BlackRock continues to see substantial investment, with $1.5 billion in weekly inflows. This accounts for a hefty 76% of all crypto ETP inflows last week, contributing to a YTD total of $2.9 billion. BlackRock’s total assets under management (AUM) now stand at $64 billion.
Fidelity and ARK also saw significant inflows of $202 million and $173 million, respectively. However, not all crypto ETP issuers are experiencing positive trends. Grayscale, one of the most well-known issuers in the space, continued to see outflows, with $124 million withdrawn from its crypto ETP products last week alone. Since the beginning of 2025, Grayscale’s ETPs have experienced $392 million in outflows.
The Broader Trend: Crypto ETPs on the Rise
Despite a slight dip in inflows compared to the previous week, the overall trend for crypto ETPs remains robust. With a total of $171 billion in assets under management across all crypto ETPs, Bitcoin-based products account for a significant 82% of that total. This continued growth reflects increasing institutional interest and the maturation of the crypto investment space.
For investors and market watchers alike, the evolving landscape of crypto ETPs signals a growing acceptance of cryptocurrencies as a legitimate asset class. As market conditions shift, the role of institutional players and regulatory developments—such as Trump’s proposed crypto reserve—will continue to shape the future of crypto ETPs.
