Key Points
- Crypto investment products have seen an inflow of $2.2 billion, bringing the total for the year to a record $29.2 billion.
- Bitcoin absorbed all of the inflows last week, while Ethereum saw only a modest increase.
Crypto investment products have seen a significant increase, with $2.2 billion flowing in over the past week.
This surge has brought the total inflows for the year to a staggering $29.2 billion, setting a new record.
Record Inflows and Market Performance
These inflows have pushed the total assets under management above $100 billion for the second time, equalling the $102 billion level seen in early June.
This data comes from CoinShares, a leading digital asset research firm.
According to James Butterfill, the head of research at CoinShares, the recent inflows can be attributed to investor sentiment surrounding the upcoming U.S. elections.
He believes that the prospect of a Republican victory has caused a sense of euphoria among investors, leading to these significant inflows.
However, as the week progressed, a slight shift in sentiment was observed, with minor outflows noted on November 1.
This highlighted the sensitivity of Bitcoin to political developments.
The U.S. market accounted for all of last week’s inflows, with Germany contributing a modest $5.1 million.
Bitcoin Dominates Inflows
Bitcoin remained the primary focus of these inflows, absorbing the entire $2.2 billion.
This shows the continued enthusiasm for the cryptocurrency.
In contrast, Ethereum attracted only $9.5 million in inflows, showing a stark contrast to the bullishness seen in Bitcoin.
In the broader market, trading volumes increased by 67% week-on-week to $19.2 billion.
This represented 35% of the total trading activity in Bitcoin across crypto exchanges.
As the U.S. election approaches, political meme coins have gained traction.
For example, Trump-based PolitiFi tokens saw gains of over 120%, while Kamala Harris-themed tokens recorded a 30% rise.
These tokens have seen increased activity as the November 5 election approaches, an event that is expected to influence the direction of the crypto market both in the U.S. and globally.
