Bitcoin tops $407 million crypto inflows amid election-driven dynamics Bitcoin tops $407 million crypto inflows amid election-driven dynamics
CoinShares attributed the positive flows to the recent political developments in the US.
2 min read
Updated: Oct. 14, 2024 at 4:09 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto-related investment products saw inflows of around $407 million, according to CoinShares’ย latest weeklyย report.
CoinShares head of research James Butterfill said the strong inflows are likely driven more by political developments, particularly the upcoming US elections, rather than changes in monetary policy.
According to Butterfill:
“This trend is evident in the fact that stronger-than-expected economic data had little impact on stemming outflows, whereas the recent US vice presidential debate and a subsequent shift in polling towards the Republicans, perceived as more supportive of digital assets, led to an immediate boost in inflows and prices.”
According to the decentralized predictions platform Polymarket, former President Donald Trumpย currently has a 54% chance of winning the Nov. 5 election, compared to Democrat Kamala Harris’s 45.4%.
Interestingly, Harris recently announced plans to implement a regulatory framework for crypto and digital assets, specifically focusing on protecting Black men investing in these markets. This initiative is part of her larger Opportunity Agenda, which aims to foster economic growth and wealth creation within the Black male community.
Bitcoin dominates flows
Bitcoin-based investment products dominated last week’s activity, with net inflows of $419 million, positioning it as the “primary beneficiary of recent political shifts.” Meanwhile, short-bitcoin funds recorded net outflows of $6.3 million, indicating a decline in bearish sentiment among investors.
Multi-asset investment products also fared well, marking their 17th consecutive week of net inflows, albeit with a modest $1.5 million worth. In addition, blockchain equity ETFs witnessed one of their most significant weekly inflows of the year, bringing in $34 million.
However, Ethereum-based products returned to their negative spell, with $9.8 million exiting the funds globally last week. In contrast, altcoins like Solana, Litecoin, XRP, and Tron saw around $2 million in inflows.
Across regions, US-based funds led the surge, contributing $406 million to the total net inflows. Butterfill believes this reflects the politically charged nature of the current market. Further, Canadian crypto investment products also saw a net inflow of $4.8 million.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
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