Crypto Investment Funds Notch $2.2 Billion, Volumes Surge

Highlights

• Crypto investment funds attracted $2.2 billion in inflows last week with gains in Bitcoin and altcoins.
• Although most products stood in the green zone, multi-assets and Binance coins recorded losses.
• The US election is seen as a major driver of institutional sentiment. 

Crypto investment funds recorded over $2.2 billion in inflows in the last seven days driving up market sentiment. Bitcoin and altcoin products recorded gains to the delight of users while multi-asset saw outflows for the first time in seventeen weeks. This comes on the heels of anticipated wins for the crypto market ahead of the United States elections.

Crypto Products Soar

A new CoinShares Digital Asset Fund Flows report shows massive inflows to virtual assets investment products. Total figures in the last seven days stood at $2.2 billion, the largest figure since July as the market recovered. Bitcoin products dominated fund flows with $2.1 billion taking monthly positive movements to $2.3 billion. 

📈 Digital asset inflows hit US$2.2bn, the largest since July, driven by optimism over a potential Republican US election win. #Bitcoin led with US$2.13bn in inflows, while Ethereum and several altcoins saw smaller gains.

Read more: https://t.co/dYYR1xnbmO pic.twitter.com/oQKGBGrB3I

— CoinShares (@CoinSharesCo) October 21, 2024

Year-to-date flows for the market leader are up $24.5 billion, while total assets under management (AUM) stand at $80 billion. Per the report, trading volumes also surged 30% in the past week with growing prices and other factors pushing the total crypto asset funds near $100 billion.

Bitcoin remains the dominant leader because of the success of spot ETF products in the United States. Bitcoin ETFs continue to inflow daily on the back of institutional optimism in the country.

Altcoins Tap Inflows

Although Bitcoin remains dominant, altcoins also notched slight inflows in the same time frame. Ethereum products saw $57.5 million, raising monthly numbers to $22.5 million to tap altcoins. Institutional favorites Solana and Litecoin posted gains of $2.4 million and $1.7 million. On the other hand, multi assets and Binance coin lost $5.3 million and $700,000 in the same period. 

On geographical spread, CoinShares analysts wrote:

“Regional flows paint a very polarised picture, with the US seeing US$2.3bn of inflows, while almost every other country saw minor outflows, most notable of which were Canada, Sweden, and Switzerland with US$20m, US$18m and US$15m respectively. We believe this may be due to minor profit taking outside the US.” 

Favorable Political Atmosphere

According to analysts, the main factor for the huge jump is the upcoming U.S. presidential elections. For months, it has been tipped to become a major bullish driver as more candidates embrace the market. Expected leanings toward Republican candidates have spiked interest due to their crypto stance over the years. 

Similarly, Kamala Harris announced intentions to keep the United States dominant in blockchain and Artificial Intelligence (AI) technology. With both candidates embracing pro-legislations, crypto market participants look on to a favorable season.