U.S. Elections Propel $407M Inflows into Bitcoin ETFs.
NAIROBI (CoinChapter.com)—Cryptocurrency investment products attracted a staggering $407 million in inflows last week, with Bitcoin ETFs leading the way. According to CoinShares’ latest report, this spike wasn’t due to economic factors but the growing political drama in the U.S. With the November elections fast approaching, investor interest in digital assets is picking up momentum.
CoinShares reports major investment inflows. Credit: X
James Butterfill, Head of Research at CoinShares, highlighted that U.S. election dynamics drove last week’s inflows. While strong economic data didn’t curb outflows, political developments—especially polling favoring Republicans—sparked new investments. He noted that Republicans are seen as more supportive of digital assets, boosting investor confidence.
On Oct. 10, polls indicated that Republicans could regain control of the Senate in the upcoming Nov. 5 elections.
U.S. Dominates Crypto ETF Inflows
The U.S. was at the heart of this surge, contributing $406 million of the total inflows. Canada added $4.8 million. Big players like the iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC) were major beneficiaries, pulling in $158 million and $138 million, respectively.
Flows by assets (in millions of US dollars). Source: CoinShares
Meanwhile, short-Bitcoin products, investment vehicles that profit when Bitcoin’s price falls, saw $6.3 million in outflows, signaling that investors are increasingly bullish on the asset. Multi-asset products continued to attract inflows for the 17th consecutive week, bringing in $1.5 million.
Retail Investors Fuel Bitcoin (BTC) Demand
On-chain data from Santiment shows that retail investors and small whales holding between 10 and 1,000 BTC have consistently accumulated Bitcoin since the start of October.
In contrast, larger entities have reduced their holdings, signaling diverging strategies. Retail demand has created upward pressure on exchanges, bolstering Bitcoin’s price.
Bitcoin holdings of different cohorts of holders. Source: Santiment
CryptoQuant data confirmed a surge in Bitcoin (BTC) demand, with October’s fastest monthly growth since April 2024.
Bitcoin and Ethereum Witness Notable Weekly Gains
Bitcoin’s price soared to $66,455.16 this past week, notching a 6.87% increase. The surge in trading volume, which hit over $42 billion, reflects a vibrant activity level and strong market interest.
BTC and ETH market performance. Credit: CoinMarketCap
Similarly, Ethereum experienced a notable uptick in its price, rising to $2,651.68—a 10.19% gain from last week. With a trading volume close to $20.83 billion, Ethereum’s performance underscores a growing investor enthusiasm in the crypto space.
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