America has reestablished itself as the global crypto capital, thanks to a combination of Donald Trump’s pro-crypto policies and a surge in demand for US-based crypto products like Bitcoin ETFs and derivatives. Trump’s promise to make America the hub of the global crypto market has led to a rise in Bitcoin prices, surpassing $100,000. The US is now driving liquidity and setting global pricing benchmarks in the crypto world after Asia briefly took the spotlight due to the Biden administration’s restrictive policies.
Bitcoin ETFs have seen record-breaking success in the US, with over $500 billion in cumulative daily trading volume and $36 billion in net inflows. The SEC, criticized in the past for its slow approach, has approved spot Bitcoin ETFs, allowing for the expansion of available ETFs beyond just Bitcoin and Ether. Wall Street is embracing the rise of these ETFs, and CME Group in Chicago has become a leader in Bitcoin futures open interest, surpassing offshore giants like Binance.
The US market depth and liquidity dominance have increased significantly, with the share of Bitcoin trading during US hours rising to 53% from 40% in 2021. Everyday investors are reshaping the market, with more institutional players getting involved. While over $100 billion is invested in spot Bitcoin ETFs, some financial advisors are still cautious due to the volatility of Bitcoin. Portfolio strategists recommend keeping a small allocation of 2% to 3% in Bitcoin ETFs and regularly rebalancing to manage risk in the volatile market.
Overall, America’s resurgence as the global crypto capital is evident in the success of Bitcoin ETFs and the rise of US-regulated crypto platforms like CME Group. Trump’s pro-crypto policies have driven demand in the US, leading to record-breaking trading volumes and increased market depth. Everyday investors are reshaping the market, with more institutional involvement and a shift in trading patterns towards US hours. While some financial advisors remain cautious, portfolio strategists recommend a small allocation to Bitcoin ETFs and regular rebalancing to manage risk in the turbulent market.
