Originally published on: November 04, 2024
Over the past four weeks, there has been a consistent surge in cryptocurrency product purchases, totaling more than $5.7 billion. This spike in demand has propelled the total assets under management to over $100 billion, matching levels last seen in June at $102 billion.
James Butterfill, the head of research at CoinShares, attributed this latest surge in inflows to the excitement surrounding the upcoming US presidential election on Nov. 5. He noted that the optimism over the election outcome has been a driving factor behind the increased investment activity in cryptocurrency products.
Bitcoin emerged as the primary beneficiary of these inflows, receiving approximately $2.2 billion in investments last week. As the Bitcoin price approached its all-time highs, investors also showed interest in short-Bitcoin products, with weekly inflows totaling $8.9 million.
While Bitcoin saw significant inflows, Ether and other altcoins like Solana did not experience the same bullish trend. Despite recording $9.5 million in inflows, Ether products lag behind Bitcoin and Solana, which saw $5.7 million of inflows last week.
The United States emerged as the biggest contributor to the market, accounting for more than $2.2 billion in inflows, while Germany saw minor inflows of $5.1 million. On the contrary, Canada and Sweden witnessed outflows of $24 million and $20 million, respectively.
It is interesting to note that Bitcoin exchange-traded funds have witnessed exponential growth in inflows amid the US election hype, with BlackRock’s spot BTC ETF surpassing $30 billion on Oct. 30. However, some analysts have raised concerns about potential bearish price movements following the influx of funds into Bitcoin ETFs.
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