Crypto investment products have seen a surge in inflows, reaching $2.2 billion throughout last week, according to a report by CoinShares.
This marks the largest weekly increase since July 2024. As per the report, the inflows were driven primarily by growing optimism surrounding a potential Republican victory in the upcoming US elections.
Bitcoin dominates inflows
Bitcoin emerged as the clear winner, attracting $2.13 billion in inflows. This surge in investment in BTC coincides with the recent price surge. This has also prompted inflows of $12 million into short-bitcoin products.
Looking at the regional fund flow rate, the United States dominated with $2.3 billion in inflows. However, most other countries experienced minor outflows.
Notable outflows were observed in Canada ($20 million), Sweden ($18 million), and Switzerland ($15 million). CoinShares analysts suggest this disparity may be due to profit-taking outside the US.
Ethereum saw more modest inflows of $58 million. Several altcoins also experienced positive investment flows, including Solana ($2.4 million), Litecoin ($1.7 million), and XRP ($0.7 million).
Source: CoinShares Upcoming US elections offer boost to crypto
The report attributes the renewed optimism in crypto investments to expectations of a Republican win in the upcoming US elections. This is because the party is generally perceived as more supportive of crypto.
The influx of investments has had a notable impact on trading volumes, with investment products seeing a 30% surge. Combined with price appreciation, these inflows have pushed total assets under management close to the $100 billion threshold.
Additionally, multi-asset investment products saw outflows of $5.3 million. This ended a 17-week streak of consecutive inflows.
Last week’s market inflows were considerably higher than the previous week’s $407 million. During that period, BTC enjoyed only a $419 million inflow.
The overall crypto market cap has started off on a positive note this week. At press time, Bitcoin is trading in the $68,300 range and Ethereum is up above the $2,700 level.
