America is back at the top of the crypto food chain, reclaiming its position as the global crypto capital just in time for 2025.
This comeback is fueled by a wild combination of Donald Trump’s reelection and an explosion in demand for US-based crypto products like Bitcoin ETFs and derivatives.
Trump’s mere promise to turn America into the beating heart of the global crypto market has put it right on its way there. Bitcoin’s meteoric rise past $100,000 this year didn’t happen by accident. Demand in the US is driving liquidity and setting global pricing benchmarks.
The Biden administration’s restrictive crypto policies pushed Asia into the spotlight for a brief moment last year, but Trump’s new pro-crypto approach has reversed that. Now, the US is once again the center of gravity in the crypto world, pulling everything back into its orbit.
Bitcoin ETFs dominate with record-breaking volumes
Bitcoin ETFs in the US have been a runaway success. Launched in January, these funds have pulled in over $500 billion in cumulative daily trading volume. They’ve also attracted $36 billion in net inflows. BlackRock’s iShares Bitcoin Trust stands out, becoming one of the most successful ETF launches ever.
The US Securities and Exchange Commission (SEC), once criticized for its slow-moving approach, finally got it right by approving these spot Bitcoin ETFs. But the party isn’t stopping there. Under Trump, the range of available ETFs is expected to grow beyond just Bitcoin and Ether.
America is preparing for a full-on crypto buffet, and Wall Street is already making room for more. CME Group, based in Chicago, is another big winner in all of this. It’s now the leader in Bitcoin futures open interest, leaving offshore giants like Binance in the dust.
Open interest for Bitcoin and Ether futures has smashed previous records this year, showing just how much confidence the market has in US-regulated platforms. The collapse of FTX in 2022 dealt a nasty blow to global liquidity, but Trump’s policies and the rise of these ETFs have helped the market recover.
Kaiko data shows that crypto market depth—how easily big trades can be made without wrecking prices—is back to where it was before the FTX disaster. The so-called “Alameda gap”? Gone.
America drives trading hours and liquidity dominance
It’s not just the big institutions that are benefiting. Everyday investors are also reshaping the market. The share of Bitcoin trading during US hours has jumped to 53%, up from 40% in 2021, according to data from Kaiko.
That’s a massive change in trading patterns, with liquidity dominance firmly planted on American soil. CF Benchmarks Head of Product Thomas Erdösi calls this a sign of growing institutional involvement. Simply put, more big players are entering the game, and they’re doing it in the US
With over $100 billion in assets under management across 12 spot Bitcoin ETFs, the numbers speak for themselves. Still though, not everyone is ready to dive in. A survey by Cerulli Associates found that 59% of financial advisors are still steering clear of crypto conversations with their clients.
The volatility of Bitcoin, despite its incredible performance this year, is still a major concern. Prices have climbed nearly 120% year-to-date as of December 20, driven largely by Trump’s pro-crypto policies. But for cautious advisors, that volatility is still a hard pill to swallow.
For those who are investing, the advice is clear: keep your allocation small and rebalance often. Portfolio strategists recommend sticking to 2% to 3% of your total investments in Bitcoin ETFs. The idea is to avoid letting these highly volatile assets overshadow the rest of your portfolio.
Regular rebalancing—monthly or at least quarterly—is very important when it comes to managing risk in such a turbulent market.
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