Originally published on: October 14, 2024
The cryptocurrency market has experienced a surge in investment products, with Bitcoin leading the way by attracting $419 million in weekly inflows.
CoinShares reported a total of $407 million in digital asset investment products during the week of Oct. 5–11, signaling a significant uptick following a $127 million sell-off the previous week amidst positive economic data in the United States.
James Butterfill, CoinShares’ head of research, attributed the increase in crypto investments to the upcoming US elections rather than monetary policy outlooks. He noted that polling trends favoring Republicans had a direct impact on boosting inflows and prices of digital assets.
Recent reports suggesting a shift in US Senate control from Democrats to Republicans after the Nov. 5 elections have further fueled investor confidence in the crypto market. The growing support for digital assets among Republicans has translated into increased inflows, with Bitcoin emerging as the primary beneficiary, attracting $419 million.
Bitcoin’s surge from $61,900 to $63,300 in just a week has also driven investment in blockchain equity exchange-traded funds (ETF) to reach one of the highest weekly inflows in 2024, totaling $34 million.
While multi-asset investment products continue to see minor inflows, Ethereum recorded outflows of $9.8 million last week. Overall, the crypto market has been on an upward trajectory since mid-September, attracting nearly $2 billion in investments between Sept. 7 and Sept. 28.
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