Crypto Funds See $407M Inflows Amid U.S. Political Shifts

• Crypto funds have posted massive inflows.
• The development came amid a shifting political landscape in the U.S.
• It signaled that investors could have shifted their focus to upcoming elections.

Global crypto investment products at BlackRock, Grayscale, Fidelity, and other asset managers recorded hundreds of millions in inflows last week amid recent political shifts in the U.S.

The development came after the funds bled $147 million the prior week, which CoinShares head of research James Butterfill attributed to weaker investor sentiment likely caused by lower expectations of a rate cut. According to Butterfill, the flow reversal signals a change in investor focus from traditional monetary policy outlooks to the upcoming U.S. elections.

Crypto Fund Flows

CoinShares said in their latest report that digital asset investment products witnessed inflows totaling $407 million, with the lion’s share of the funds coming from the U.S. The U.S. accounted for $406 million as Canada claimed a notable inflow of $4.8 million.

“This trend is evident in the fact that stronger-than-expected economic data had little impact on stemming outflows, whereas the recent US vice presidential debate and a subsequent shift in polling towards the Republicans, perceived as more supportive of digital assets, led to an immediate boost in inflows and prices,” Butterfill noted.

Bitcoin was the primary beneficiary of the shifting political landscape, pulling in $419 million in inflows, while Ethereum resumed its negative streak with $8.9 million in weekly outflows. At the same time, short-Bitcoin investment products posted outflows totaling $6.3 million.

Notably, multi-asset investment products extended their positive streak to a 17th consecutive week with a mild inflow of $1.5 million. Blockchain equity exchange-traded funds (ETFs) recorded their largest weekly inflows of the year, totaling $34 million, likely buoyed by recent Bitcoin price surges.

Read how U.S. spot Bitcoin ETFs finished strong last week:
Bitcoin ETFs Break Three-Day Losing Streak with $253M Inflows

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