Cryptocurrency investment products have recorded their largest weekly inflows since July, reaching a total of $2.2 billion, according to data from crypto investment firm CoinShares. This surge in investment comes amid growing optimism about a potential Republican victory in the upcoming United States elections, which many investors believe could lead to more favorable policies for digital assets.
In its Digital Asset Fund Flows Weekly Report on October 21, CoinShares explained that the current optimism surrounding the U.S. elections is fueling positive momentum in the crypto markets. James Butterfill, head of research at CoinShares, stated, “We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming US elections, as they are generally viewed as more supportive of digital assets.”
U.S. Leads the Charge in Crypto Investment:
The United States led the inflow of crypto investments during the week of October 12–18, contributing $2.3 billion to the overall inflows. The U.S. dominance in the market was driven primarily by Bitcoin-based products, especially those linked to major financial institutions like BlackRock. BlackRock’s iShares Bitcoin exchange-traded fund (ETF) accounted for $1.19 billion of the total weekly inflows.
Other regions, however, did not fare as well. Canada and Sweden saw outflows of $19.9 million and $18.2 million, respectively, which CoinShares attributed to profit-taking following bullish market activity in the U.S. Meanwhile, Australia was the only other country that experienced positive inflows, with a modest $1.4 million.
Bitcoin Leads the Way:
Bitcoin continues to be the top performer in the crypto investment space, recording an impressive $2.13 billion in inflows last week. This solidifies Bitcoin’s position as the largest crypto investment product, benefiting from the positive sentiment surrounding U.S. elections and market recovery.
Other cryptocurrencies also saw increased inflows, although to a lesser extent. Ether (ETH)-based products brought in $58 million, while short-Bitcoin products recorded $12 million in inflows—the highest since March 2024.
On the flip side, multi-asset crypto investment products saw outflows of $5.3 million, ending a 17-week streak of consecutive inflows.
Crypto Market on the Rise:
With the latest surge in investment, crypto products have added a total of $2.4 billion in inflows for October alone, which aligns with the "Uptober" trend typically seen during this time of year. The overall bullish sentiment has also increased trading volumes in crypto investment products by 30%, with total assets under management approaching the $100 billion mark.
Conclusion:
As the U.S. presidential elections draw near, the growing optimism about a Republican win is proving to be a major catalyst for the crypto market. Investors are banking on the belief that a Republican-led administration could enact more supportive policies for digital assets, and this expectation is driving significant inflows into Bitcoin and other cryptocurrencies. With total assets under management nearing $100 billion, the crypto market seems poised for continued growth, especially as institutional interest continues to rise.
