 Crypto funds see $2.2B inflows amid US election hype — CoinShares 
2024-11-04

Cryptocurrency investment products posted another massive week as the approaching United States presidential election draws closer.
Digital investment products saw $2.2 billion in inflows from Oct. 26 to Nov. 2, bringing year-to-date (YTD) inflows to a record-breaking figure of $29.2 billion, CoinShares reported in its new Digital Asset Fund Flows Weekly Report.
The latest inflows mark four weeks of consecutive buying in cryptocurrency products, totaling more than $5.7 billion, or 19% of all inflows YTD.
The recent price appreciation pushed total assets under management to more than $100 billion for the second time in history, matching levels seen in June at $102 billion.
The euphoria around the “prospect of a Republican victory”
According to CoinShares’ head of research, James Butterfill, the latest inflows were partly driven by the euphoria around the possible outcome of the upcoming US presidential election on Nov. 5. He wrote:
Butterfill previously highlighted similar reasons for billions of inflows in October, attributing active buying to the growing optimism over a potential Donald Trump election win in the US.
Most inflows came into Bitcoin products
Similarly to previous inflows, Bitcoin BTCUSD was almost the sole beneficiary last week, seeing roughly $2.2 billion of inflows. Amid the Bitcoin price nearing its all-time highs last week, cryptocurrency investors were also actively buying short-Bitcoin products, with weekly inflows amounting to $8.9 million.
Despite recording $9.5 million inflows, Ether ETHUSD products remain in significant contrast to a bullish trend seen in Bitcoin or Solana SOLUSD, which saw $5.7 million of inflows last week, Butterfill noted.
The US was again the biggest contributor to the market, bringing more than $2.2 billion in inflows, while Germany saw minor inflows of $5.1 million.
In contrast, Canada and Sweden led the outflows last week, seeing $24 million and $20 million outflows, respectively.
As previously mentioned, inflows in Bitcoin exchange-traded funds have been massively growing amid the upcoming election in the US, with BlackRock’s spot BTC ETF surpassing $30 billion on Oct. 30.
Some analysts have cautioned that unusually large Bitcoin inflows could be followed by bearish price movements as massive Bitcoin ETF buying has historically been “followed by bearish price movements.”