According to CoinShares’ latest weekly report, crypto-related investment products received approximately $407 million in inflows.
James Butterfill, head of research at CoinShares, said the large inflows were likely to be driven by political developments, particularly the upcoming US election, rather than changes in monetary policy.
According to Butterfill,
“This trend is evident in the fact that stronger-than-expected economic indicators had little impact on stemming the outflow, while the recent US vice presidential debate and subsequent changes in public opinion polling have The perceived Republican support will immediately drive up inflows and prices.”
According to decentralized prediction platform Polymarket, former President Donald Trump currently has a 54% chance of winning the November 5 election, while Democrat Kamala Harris has a 45.4% chance.
Interestingly, Harris recently announced plans to introduce a regulatory framework for crypto and digital assets, with a particular focus on protecting black men investing in these markets. This effort is part of her larger opportunity agenda, which aims to foster economic growth and wealth creation within the Black male community.
Bitcoin dominates flows
Last week’s activity was dominated by Bitcoin-based investment products, with net inflows of $419 million, positioning them as “a major beneficiary of recent political changes.” Meanwhile, Bitcoin short funds recorded net outflows of $6.3 million, indicating a decline in investor bearish sentiment.
Multi-asset investment products also performed well, posting net inflows for the 17th consecutive week, albeit worth $1.5 million. Additionally, blockchain equity ETFs recorded the largest weekly inflows of the year, bringing in $34 million.
However, the Ethereum-based product is back in negative territory, with $9.8 million leaving the fund globally last week. In contrast, altcoins such as Solana, Litecoin, XRP, and Tron saw inflows of around $2 million.
Across the region, US-based funds led the surge, contributing $406 million to total net inflows. Butterfill believes this reflects the political nature of the current market. Additionally, Canadian crypto investment products saw net inflows of $4.8 million.
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