Recent data from CoinShares reveals that the cryptocurrency investment sector experienced significant inflows totaling approximately $407 million in the past week.
CoinShares Director of Research, James Butterfill, attributes this surge in investment primarily to political developments, particularly the upcoming U.S. elections, rather than shifts in monetary policies.
“This trend is notable as robust economic indicators have not notably reduced outflows; however, the recent vice presidential debate and a shift in polling towards the Republican side—and their favorable stance on digital assets—resulted in immediate increases in inflows and asset prices.”
Current predictions from the decentralized platform Polymarket suggest that former President Donald Trump holds a 54% likelihood of winning the election on November 5, overshadowing Democratic contender Kamala Harris, who stands at 45.4%.
Notably, Harris has recently announced intentions to establish a regulatory framework aimed at safeguarding investments in cryptocurrencies and digital assets, particularly focusing on assisting Black men in these investment arenas. This initiative aligns with her broader Opportunity Agenda to promote economic prosperity within the Black male demographic.
Bitcoin Leads Investment Flows
Bitcoin-based products saw the most activity last week, attracting net inflows of $419 million, making it the standout asset benefiting from recent political changes. Conversely, short-bitcoin funds experienced net outflows of $6.3 million, suggesting a reduction in bearish investor sentiment.
Multi-asset investment products also performed well, marking the 17th consecutive week with net inflows, albeit a modest $1.5 million. Additionally, equity ETFs focused on blockchain enjoyed one of the most substantial inflows of the year, totaling $34 million.
In contrast, Ethereum-linked products faced a downturn, with $9.8 million exiting the funds globally last week. Other altcoins, including Solana, Litecoin, XRP, and Tron accumulated approximately $2 million in inflows.
Geographically, U.S.-based investment funds were the key contributors, bringing in $406 million of the total net inflows. Butterfill noted that this reflects the market’s current politically charged environment, while Canadian crypto investment products also achieved net inflows of $4.8 million.