Trump's Crypto Order Sparks $1.9B Inflows, Ethereum Leads Altcoins

The U.S. crypto market witnessed a significant influx of $1.9 billion in digital asset inflows last week, following the issuance of a crypto executive order by President Donald Trump. This development signals a step towards greater regulatory transparency in the United States, which has subsequently impacted global crypto investment products offered by firms such as iShares, Grayscale, Fidelity, Bitwise, CoinShares, and BlackRock.

The executive order, aimed at positioning the U.S. as a crypto capital, has sparked renewed optimism in the market. Some altcoins, including Ethereum and XRP, experienced relatively high inflows. While weekly inflows slipped from the previous week's record of $2.2 billion to $1.9 billion, Ethereum topped the list with about $205 million in inflows, closely followed by XRP with over $18.5 million. Bitcoin, however, led in both market value and inflow size.

The surge in fund inflows is largely attributed to Trump's crypto executive order, signed last week. The order marks a clear shift towards enabling innovation and adoption in the crypto industry by removing regulatory hurdles and barriers. By repealing certain prior laws, the order aims to create more favorable conditions for digital asset investment.

The favorable regulatory change has been a game-changer for the industry, attracting further interest and capital inflows. U.S.-based investors supplied $1.7 billion of the $1.9 billion inflows during the period of the executive order, significantly impacting the U.S.-based market. Trading volumes peaked at $25 billion, with prices reflecting wider positive sentiment towards crypto, rather than surging across the board.

Overall, the increased inflows in the U.S. crypto market, driven by Trump's executive order, suggest that clearer regulations and a more supportive environment for digital assets could continue to attract mainstream investment with even higher inflows in the future.