In a clear sign of the crypto mania, digital asset investment funds have seen a massive surge in inflows, with assets under management through digital asset funds crossing $138 billion, a new record.
These figures came in a report issued on Monday by CoinShares, a digital asset management company that tracks investment funds around the world that provide investors with exposure to digital currencies. The report explained that “this recent surge in investment activity appears to be due to a combination of easy monetary policy and the Republican Party’s landslide victory in the recent US elections.”
Investors have poured $2.2 billion into cryptocurrency-linked funds over the past week, including Bitcoin, Ethereum and Solana exchange-traded funds (ETFs) in Europe and Asia.
This trend reflects a combination of loose monetary policy in the United States, as well as the Republican Party’s strong showing in the recent elections, which contributed to the increased demand for these funds.
After Donald Trump won the US presidential election earlier this month, Bitcoin’s price also jumped to new highs above $93,000, boosted by the appeal of US bitcoin funds to investors.
President-elect Trump has shown his commitment to supporting the digital assets sector by making various promises during his election campaign.
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The report also noted that most of the flows were focused on US-listed spot Bitcoin ETFs, which provided investors of all types – from large hedge funds to individual investors – with the opportunity to invest in Bitcoin in a simplified and organized manner.
Coinshares also noted that demand for Ethereum (ETH), the second-largest digital asset by market cap, has seen a significant rebound, with Ethereum-linked funds seeing $646 million in inflows over the past week.
The digital sector appears to be witnessing unprecedented political and economic support. This opens the door for digital currencies to reach new heights. With the approval of new Bitcoin spot ETFs and political shifts in the United States, the digital currency sector may be on the verge of a new boom.
These shifts are also encouraging more investors to enter the market, which is pushing digital assets to record numbers and increasing their attractiveness as an investment tool in the near future.
