Crypto inflows recorded a dramatic surge last week, reaching an impressive $2.2 billion. This marks the largest weekly inflow of 2025 so far, fueled by optimism surrounding Donald Trump’s inauguration on January 20.

The rally brought total year-to-date (YTD) inflows to $2.8 billion, setting a promising tone for the crypto market this year.

Crypto Inflows Hit $2.2 Billion Last Week

The latest CoinShares report indicates that Bitcoin led the charge, attracting $1.9 billion in inflows last week. This brought its YTD total to $2.7 billion, with total assets under management (AuM) for digital asset products reaching $171 billion.

Interestingly, while the price of Bitcoin has risen significantly, minor outflows from short positions amounted to $0.5 million — a rare occurrence during bullish momentum. This suggests a growing confidence among investors that the current rally has staying power.

Further, the US accounted for the lion’s share of the inflows, contributing $2 billion. However, other regions also reported notable activity, with Switzerland and Canada recording $89 million and $13 million, respectively.

The recent surge in inflows marks a significant shift from the previous week. According to BeInCrypto, crypto investment inflows were limited to $48 million last week due to uncertainty around macroeconomic and monetary policy. The sharp increase reflects a wave of renewed market optimism.

Trump’s Impact on the Market

In the report, CoinShares’ James Butterfill ascribes the renewed optimism to euphoria around Trump’s inauguration.

“Digital asset investment products recorded inflows of $2.2 billion last week amid the Trump inauguration euphoria, the largest week of inflows so far this year, bringing year-to-date (YTD) inflows to $2.8 billion,” an excerpt in the report read. 

This aligns with BeInCrypto’s report, which states that this event is among the top four economic events driving Bitcoin sentiment this week. The sentiment is buoyed by expectations that Trump’s administration will introduce policies favorable to the cryptocurrency sector. Trump’s campaign promises to promote blockchain innovation have created a wave of enthusiasm among market participants.

In particular, Trump’s inauguration has been a key driver of the recent market rally. Investors are optimistic that his administration will foster a regulatory environment that encourages cryptocurrency adoption and innovation.

“The greatest Solana win coming from the new Trump Presidency will be our long-awaited ETF in 2025 or 2026. No surprise, the incredible VanEck team will lead the charge here with support from 21Shares and Canary Capital,” said Dan Jablonski, head of growth at news and research firm Syndica.

With record-breaking weekly inflows and growing confidence among investors, 2025 is shaping up to be a banner year for cryptocurrencies. The current momentum indicates strong institutional and retail interest, driven by favorable policy expectations and improving market conditions.

While challenges remain, such as regulatory clarity and market volatility, the optimism surrounding Trump’s administration could act as a catalyst for further growth in the crypto sector. Specifically, the new pro-crypto leadership at the securities regulator could mark a new dawn for financial innovation in the US.

As of this writing, Bitcoin was trading at $107,841. This represents a modest surge of almost 3% since the Monday session opened and follows BTC’s recent all-time high of $109,588 on Binance.