Digital Asset Funds' AUM Climbs to New High After Drawing $2.2 Billion in a Week

Digital asset funds had a massive surge last week, drawing $2.2 billion in inflows and pushing total assets under management (AuM) to all-time highs.

Last week’s inflows brought the total year-to-date (YTD) inflows to $2.8 billion, according to CoinShares' weekly fund flows report. Bitcoin (BTC) led the way with $1.9 billion in inflows, bringing its YTD total to $2.7 billion. Ethereum (ETH) recorded $246 million in inflows, while XRP brought in around $31 million. There were outflows of $0.5 million from short positions.

The report also highlighted that recent price movements in digital assets drove total AuM to a record $171 billion. BTC dominated, accounting for roughly $141 billion, while Ethereum (ETH) contributed about $18 billion. Additionally, trading volumes for exchange-traded products (ETPs) remained robust, reaching $21 billion last week, which represents 34% of BTC trading volumes on exchanges.

James Butterfill, head of research at CoinShares, attributed the recent surge in digital asset inflows to market excitement surrounding President Donald Trump's inauguration. The inauguration underscored the cryptocurrency market's susceptibility to political events, with investors viewing the new administration's pro-crypto stance and potential regulatory shifts as catalysts for further growth.

‘Trump Euphoria’

On Jan. 20, Donald Trump was inaugurated for a second term as the 47th President of the United States. A significant part of Trump’s campaign focused on pro-crypto sentiment, alongside the appointment of pro-crypto figures to key positions.

In the months leading up to his inauguration, BTC hit record highs, including surpassing the $100,000 mark for the first time just one month after Trump’s victory in the 2024 presidential election on Nov. 05. On inauguration day, BTC surged to a new all-time high, reaching $108,500.

Since then, the cryptocurrency has retreated to $103,729, according to CoinGecko. Despite this slight dip, industry leaders remain optimistic about BTC surging to new heights in 2025. Just earlier today, BlackRock CEO Larry Fink predicted at the World Economic Forum in Davos, Switzerland that BTC could reach $700,000.

Meanwhile, Richard Teng, CEO of cryptocurrency exchange Binance, stated on Tuesday that he expects "much clearer regulation" in the U.S. under Trump’s administration, a shift he believes will be beneficial for the crypto markets.