Cryptocurrency investment products have posted another successful week as Bitcoin led weekly inflows with $419 million.
Digital asset investment products saw inflows of $407 million during the week from Oct. 5–11, CoinShares reported in its latest Digital Asset Fund Flows Weekly Report on Oct. 14.
The fresh crypto inflows followed a minor $127 million sell-off the previous week, which came amid stronger-than-expected economic data in the United States.
Political factors driving inflows
According to CoinShares’ head of research, James Butterfill, the increase in crypto investment products last week was likely influenced by the upcoming US elections rather than monetary policy outlooks.
“This trend is evident in the fact that stronger-than-expected economic data had little impact on stemming outflows,” Butterfill wrote, adding that other factors, such as “polling toward the Republicans,” led to an “immediate boost in inflows and prices.” He also mentioned that Republicans are widely perceived as “more supportive of digital assets.”
“Republicans appear poised to take control of Senate, new poll shows,” from Oct. 10. 2024. Source: The New York Times
On Oct. 10, major publications, including The New York Times, reported on new polling, which suggested that control of the US Senate would flip from the Democratic Party to the Republican Party after the upcoming elections on Nov. 5.
The election will determine the next US president in the race between Republican candidate and former President Donald Trump and Democratic candidate, Vice President Kamala Harris.
Bitcoin is the “primary beneficiary” of political shifts
With inflows of $419 million, Bitcoin (BTC) was the “primary beneficiary” of the recent political shifts, CoinShares’ Butterfill wrote. In contrast, short-Bitcoin investment products saw outflows of $6.3 million.
In the past week, blockchain equity exchange-traded funds (ETF) saw one of the largest weekly inflows in 2024 so far, totaling $34 million.
The growth likely came in response to the surge in the price of Bitcoin, which surged more than 2% from $61,900 on Oct. 6 to roughly $63,300 on Oct. 12, Butterfill noted.
Flows by assets (in millions of US dollars). Source: CoinShares
Multi-asset investment products saw minor inflows of $1.5 million, marking the 17th consecutive week of inflows for the asset class. Ethereum, on the other hand, continued its trend of outflows, with investors pulling $9.8 million from Ether (ETH) products last week.
The latest inflows continue a significant trend that began in mid-September. According to CoinShares reports, crypto investment products added nearly $2 billion between Sept. 7 and Sept. 28.
Magazine: 10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’
