The demand for US exchange-traded funds (ETFs) linked to major digital assets like Bitcoin and Ether has reached unprecedented levels, fueled by President-elect Donald Trump's pro-crypto stance.
Growth in Investment Interest for Crypto ETFs
The cumulative digital assets market cap rose slightly to $3.43 trillion, with a 24-hour trading volume increase of 18% to $181 billion. Analysts point to Bitcoin balances on exchanges drying up amid high purchase pressure. According to reports, November 2024 saw Bitcoin ETFs attracting $6.5 billion, and Ether ETFs $1.1 billion, reaching all-time highs following Trump's election victory.
Ether's Position Strengthens
Bitcoin's surge is accompanied by a growing interest in Ether, signaling a rising speculative appetite for crypto. On November 29, nine Ether ETFs recorded a $333 million net inflow, with major players like BlackRock and Fidelity leading. Data from SosoValue indicates that Ether ETFs pulled in over $466 million in the last week of November. ETH price surged by 48% to trade at an average price of $3,691. Bitcoin is trading at an average price of $96,892.
Declining Bitcoin Balances on Exchanges
Markus Thielen suggested that Bitcoin balances on exchanges are rapidly decreasing, without large inflows to replenish inventory as seen earlier this year. Only three exchanges—Bitfinex, Binance, and Coinbase—currently have sufficient Bitcoin inventory. Recent substantial inflows indicate that a bearish outlook is premature. The crypto market capitalization has now reached $3.43 trillion, with BTC’s dominance decreasing from 60% to 56%, possibly signaling the beginning of altcoin season.
Since Trump's election, the crypto market has surged by $1.2 trillion, with pro-crypto policies driving this rally, revitalizing the sector after the 2021 downturn.
