Bitcoin’s Meteoric Rise: Political Shifts and ETF Inflows Fuel New Crypto Era

Bitcoin is making major moves. Now the world’s eighth-largest asset by market capitalization, it has overtaken oil giant Saudi Aramco, solidifying its hold on the crypto world with a 61.38% market share and a record-breaking price above $93,000 on Wednesday. This surge didn’t just happen in isolation; it’s been fueled by a mix of political and financial forces pointing to a new era for digital assets.

A significant driver has been U.S. President-elect Donald Trump’s open support for cryptocurrency during his campaign. With the Republicans now in control of both the House and Senate, investors are hopeful that crypto-friendly regulation could soon be on the way. This political shift is feeding optimism that the future of cryptocurrency, at least in the U.S., may face fewer regulatory roadblocks.

Beyond politics, the recent spike in Bitcoin’s value has also been driven by a record flow of funds into Bitcoin-focused exchange-traded funds (ETFs) listed in the U.S. Over the past six trading days alone, these ETFs brought in a staggering $4.7 billion, including over $510 million in a single day. Since ETFs first hit the market in January, total investments have reached $28.2 billion, according to data from Farside. Investors appear to be shifting away from “basis trade” tactics, a more neutral strategy, in favor of outright long positions—a strong show of confidence in Bitcoin’s value.

Analyst Checkmate supports the view that ETF demand is largely behind Bitcoin’s current rise, highlighting that spot-market demand, rather than futures trading, is driving this rally. The evidence? The CME open interest hasn’t seen a meaningful increase, showing that traditional futures trading is not the main factor here. BlackRock’s iShare Bitcoin Trust (IBIT) is also setting new records, with trading volumes reaching an impressive $5 billion in a single day, ranking it among the most heavily traded funds. Bloomberg analyst Eric Balchunas confirms this unprecedented surge, noting that three other ETFs and eight stocks were the only assets trading at higher volumes that day.

Meanwhile, Ethereum’s native token, Ether (ETH), isn’t being left behind. Interest in U.S.-listed spot products is rising again, with an additional $146.9 million inflow on November 14, pushing its total inflows to $241.7 million. Both Bitcoin and Ether’s performances are signaling a new wave of mainstream and institutional interest in the crypto market—perhaps unlike anything we’ve seen before.

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