Originally published on: November 04, 2024
Crypto funds are seeing a surge in investments as excitement around the upcoming US presidential election continues to grow. In the last week alone, digital investment products attracted $2.2 billion in inflows from October 26 to November 2, setting a new record for year-to-date inflows at $29.2 billion, as reported by CoinShares in its latest Digital Asset Fund Flows Weekly Report.
This marks the fourth consecutive week of cryptocurrency products seeing significant buying activity, with total inflows reaching over $5.7 billion, accounting for 19% of the year’s total. The recent price surge has pushed total assets under management in digital investments to over $100 billion, matching levels last seen in June at $102 billion.
James Butterfill, CoinShares’ head of research, attributes the recent inflows to the widespread optimism surrounding the potential outcome of the US election on November 5. He suggests that investors see potential opportunities in the market based on the election results.
Bitcoin remains the primary beneficiary of the recent inflows, with nearly $2.2 billion flowing into BTC products last week. As the price of Bitcoin approaches all-time highs, investors are actively purchasing short-Bitcoin products, with weekly inflows totaling $8.9 million.
While Ether products saw $9.5 million in inflows, they do not reflect the same bullish trend seen in Bitcoin or other altcoins like Solana, which attracted $5.7 million in inflows last week.
The US was the largest contributor to the market, with over $2.2 billion in inflows, while Germany saw minor inflows of $5.1 million. On the other hand, Canada and Sweden experienced outflows of $24 million and $20 million, respectively.
With the increase in Bitcoin inflows, particularly in exchange-traded funds (ETFs), some experts warn of potential bearish price movements following such large investments. BlackRock’s spot BTC ETF surpassed $30 billion on October 30, indicating a growing interest in digital assets among institutional investors.
As the crypto market continues to be influenced by external events like the US election, investors are closely monitoring the impact on prices and market trends. Stay updated with critical insights on investment opportunities and trading strategies by subscribing to the Markets Outlook newsletter.
