Political Shift Fuels $407 Million in Crypto Fund Inflows
Last week, digital asset investment products globally saw a significant turnaround, recording $407 million in net inflows, according to CoinShares.
This surge follows a previous week that recorded $147 million in outflows, marking a notable shift in investor sentiment.
The inflows were reportedly influenced by a political shift towards Republican candidates ahead of the upcoming U.S. presidential election. CoinShares Head of Research, James Butterfill, noted that recent economic data had minimal impact on investor behavior.
Instead, the recent U.S. vice presidential debate and favorable polling for Republicans, perceived as more supportive of digital assets, appear to have catalyzed this increase in crypto investments.
U.S.-based funds were the primary recipients of these inflows, adding $406 million. Canadian products contributed a smaller amount, with $4.8 million in net inflows, while funds from other regions generally saw outflows.
Bitcoin-based investment products emerged as the leading beneficiary, attracting $419 million in inflows. BlackRock's IBIT spot Bitcoin ETF was a significant contributor, adding $140.6 million.
Despite this growth, short-Bitcoin funds experienced $6.3 million in outflows.
Ethereum-based products continued to struggle, with $9.8 million exiting these funds globally. In contrast, U.S. spot Ethereum ETFs managed to record $1.9 million in net inflows.
The GMCI 30 index, which tracks the top 30 cryptocurrencies, gained 2% over the past 24 hours, reaching 120.16, reflecting an 18% increase over the last week.
