In a recent report, Coinshares, led by principal researcher James Butterfill, revealed a significant increase in digital asset inflows, reaching $1.98 billion following the US elections.
Historic $1.98 Billion Flows Into Digital Assets After Election
According to the latest Coinshares report, the digital asset investment landscape saw $1.98 billion in inflows in the week following the U.S. election. This was the fifth consecutive week of positive inflows, largely driven by macroeconomic conditions and political developments in the U.S., Butterfill noted. Coinshares data shows that the surge pushed global assets under management (AUM) in digital assets to a record high of $116 billion, underscoring investors’ growing confidence in digital currencies.
The United States led the distribution of inflows to the region with $1.95 billion, supported by steady demand in Europe, where Switzerland and Germany also recorded positive inflows of $23 million and $20 million, respectively. Coinshares highlighted that bitcoin (BTC) dominated the inflows, with $1.8 billion attributed to the asset as it rose from broader macroeconomic changes, including the Federal Reserve’s interest rate cut in September. Butterfill found that the impact of these political and financial changes has strengthened bitcoin’s appeal to investors, positioning it as a favored option amid market turmoil.
Ethereum (ETH) also saw notable interest, with $157 million inflows—the largest since the exchange-traded fund (ETF) launched in July. The surge, as Coinshares details, signals a new shift in sentiment, as investor enthusiasm extends beyond bitcoin. Altcoins like solana (SOL), uniswap (UNI), and tron (TRX) also joined the surge, contributing $3.9 million, $1 million, and $500,000 in inflows, respectively. The report also highlighted a smaller but growing interest in blockchain stocks, with $61 million flowing into that segment as traditional and decentralized markets converge.
Coinshares’ report further highlights the broader implications of this flow trend, as digital assets continue to attract the attention of investors globally. With US political dynamics influencing market sentiment, Butterfill notes that these flows highlight the impact of the changing financial landscape on crypto demand. According to Coinshares’ analysis, sustained growth across bitcoin, ethereum, and other digital assets points to a strong finish for the sector in 2023, demonstrating continued interest in decentralized financial instruments.
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