Cryptocurrency investment products had another strong week, with Bitcoin leading the inflows, attracting $419 million.
From October 5 to October 11, digital asset investment products saw total inflows of $407 million, according to CoinShares’ Digital Asset Fund Flows Weekly Report, released on October 14. This marked a rebound after a minor sell-off of $127 million the previous week, which had followed stronger-than-expected U.S. economic data.
CoinShares’ head of research, James Butterfill, attributed the rise in crypto investment products last week to political factors, particularly the upcoming U.S. elections, rather than monetary policy shifts.
“This trend is evident in the fact that stronger-than-expected economic data had little impact on stemming outflows,” Butterfill explained. He added that factors like “polling toward the Republicans” provided an “immediate boost in inflows and prices.” He noted that Republicans are generally seen as more supportive of digital assets.
Bitcoin was the main beneficiary of the recent political developments, drawing in $419 million in inflows. In contrast, short-Bitcoin investment products saw outflows of $6.3 million.
Butterfill pointed out that Bitcoin’s price rose over 2% during the week, from $61,900 on October 6 to roughly $63,300 by October 12. He suggested the price surge likely fueled additional investment interest.
Additionally, blockchain equity exchange-traded funds (ETFs) experienced significant inflows, totaling $34 million, marking one of the largest weekly inflows for such products in 2024.
This increase came as U.S. election polls on October 10 suggested a potential shift in Senate control from the Democratic Party to the Republicans, which could influence the digital asset market due to the Republican Party’s perceived pro-crypto stance. The election will also decide the next U.S. president, with former President Donald Trump and Vice President Kamala Harris as the main candidates.
