CoinShares highlights that the recent presidential executive order signed by Donald Trump, to ensure the innovation of the cryptocurrency and digital asset industry in the United States, has generated a massive injection of $1.900 billion into cryptocurrency investment funds, boosting confidence in the sector.
According to CoinShares, Trump’s executive order on cryptocurrencies, which was stated to aim to ensure innovation in the digital asset industry in the United States, has attracted a massive injection of capital, with investment flows exceeding $1.900 billion in a single week.
In its weekly report on capital flows into crypto-asset-based investment funds, the firm underlines the growing importance of government regulation in shaping trust and investment in this innovative and growing market.
Trump's executive order has been a "boom" for investments
The report provided by CoinShares indicates a sustained and significant growth in cryptocurrency investments, directly linked to Donald Trump's executive order. The magnitude of the capital injection experienced by cryptoasset funds last week suggests a favorable regulatory stance that has calmed the concerns of institutional investors and boosted market confidence.
The $1.900 billion recorded in the last 7 days represents a considerable volume for digital asset investment funds, indicating considerable growth in investment activity and a consolidation of the optimistic market sentiment, despite the recent price drop that cryptocurrencies experience.
Source: CoinShares
“Digital asset investment products saw inflows totaling $1.9 billion last week, likely as a result of recent presidential executive orders proposing the initiation of a Bitcoin strategic reserve asset.”, said James Butterfill, head of research at CoinShares.
Bitcoin leads the surge, but altcoins benefit too
The CoinShares report, which details the exact distribution of capital by cryptocurrency, shows that Bitcoin remains the dominant digital asset in investment markets, attracting a total of $1.591 billion in inflows this week.
However, despite being the main beneficiary of this investment flow, other cryptocurrencies, commonly referred to as “altcoins,” also experienced an increase in capital flows. According to the data, Ethereum, which had been on a negative streak in investment markets, recorded inflows of around $204,7 million, followed by XRP, with inflows of $18,5 million, and Solana, with $6,8 million.
Source: CoinShares
Investment in these altcoins reflects the growing diversification in the cryptocurrency market, where investors are exploring opportunities beyond Bitcoin. Trump’s executive order may have boosted investment not only in Bitcoin, but in the cryptocurrency sector as a whole, creating a positive ripple effect in the market.
A change in the regulatory landscape
The market reaction to the executive order signed by President Trump suggests a shift in risk perception towards this asset class by investors. Regulatory uncertainty has historically been a factor limiting investment in cryptocurrencies.
However, the issuance and signing of this executive order, which has laid the groundwork for government adoption of Bitcoin and digital assets, appears to have alleviated these concerns by providing a clearer and more hopeful view of the regulatory future for cryptoassets in the United States.
In short, the CoinShares report points to the potential impact that clearer and more favorable government regulation from the U.S. government can have on the cryptocurrency market. While this order was signed just a few days ago, significant capital flows suggest that the proactive stance of Trump and his new administration can be a catalyst for the growth of the industry.
Since his election to date, Donald Trump has kept his promises in the crypto industry, creating a task force to advise on regulations, banning the issuance of a CBDC, and launching several initiatives that seek to position the United States as a leader in cryptocurrencies. His approach, which includes the creation of a national Bitcoin reserve and a favorable regulatory framework, could consolidate the country as the “crypto capital of the planet,” strengthening its economic and financial influence internationally and encouraging technological innovation and investment.
