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Strong Polling for Republicans Drives $407M Inflow Into Crypto Investments

Strong Polling for Republicans Drives $407M Inflow Into Crypto Investments

CCNCCN2024/10/13 16:00
By:CCN

Key Takeaways

  • Crypto investment products recorded a net inflow of $407 million.
  • The strong inflows were largely credited to the growing optimism surrounding Republican support.
  • Republican Presidential candidate Donald Trump edged Kamala to take the lead in polls.

As Republicans gain momentum ahead of the U.S. elections, investors appear to be pouring money into digital assets.

The recent shift in popularity polls has sparked a dramatic change in investor sentiment, driving a staggering $407 million into digital asset investment products last week.

The influx of capital, reported by CoinShares , marks a significant reversal from previous weeks.

Bitcoin Leads Crypto Investment Flow 

Cryptocurrency investment products saw a sharp reversal last week, with Bitcoin leading the surge.

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Inflows into Bitcoin products rose by $419 million, marking a major change from prior weeks.

Meanwhile, short Bitcoin products recorded a modest outflow of $6.3 million.

Strong Polling for Republicans Drives $407M Inflow Into Crypto Investments image 0 Weekly crypto asset flows. Source: Coinshares.

According to CoinShares, multi-asset investment products extended their streak to 17 weeks, attracting $1.3 million in new capital.

In contrast, Ether products continued to see net outflows , reaching $9.8 million.

Despite Ethereum’s struggles, blockchain equity ETFs attracted $34 million, one of the year’s largest weekly inflows. The persistent weakness in Ether investment products stands in sharp relief to their Bitcoin counterparts, which have recovered from a month-long slump.

A broader look at the crypto landscape reveals that all other digital asset investment products posted net inflows last week, with one notable exception: Ethereum.

Most ETH exchange-traded funds (ETFs) have struggled to build momentum since their initial approval, with demand slipping significantly in recent weeks.

Strong Polling for Republicans Drives $407M Inflow Into Crypto Investments image 1 Investment product flow by asset. Source: Coinshares.

One bright spot in the crypto universe was blockchain equity ETFs, which attracted $34 million in inflows—one of the largest weekly inflows of the year.

Republican Frenzy Drives Crypto Investment

According to Coinshares data, stellar economic data failed to stem the tide of outflows in crypto investment products last week, contrary to expectations.

Instead, a dramatic shift in polling dynamics has taken center stage, driving a surge in investor inflows.

As Republican presidential candidate Donald Trump’s popularity has gained traction on multiple betting platforms, his pro-crypto stance and lofty promises have resonated with investors.

In contrast, Democratic presidential candidate Kamala Harris’s perceived anti-crypto stance, coupled with the Biden administration’s conservative approach to digital assets, has failed to inspire confidence.

A pivotal moment for the polls came when Elon Musk’s endorsement of Trump propelled him ahead of Harris in the polls, a lead that has since been maintained with the election mere weeks away.

Strong Polling for Republicans Drives $407M Inflow Into Crypto Investments image 2 Presidential race odds. Source: Polymarket.

According to Polymarket data , Trump’s odds of winning have surged, while the likelihood of a Republican sweep has more than doubled that of the Democrats.

Strong Polling for Republicans Drives $407M Inflow Into Crypto Investments image 3 Democrats vs. Republicans odds. Source: Polymarket.

With Trump’s star on the rise and Republicans gaining ground, sentiment has shifted decidedly in favor of crypto assets.

Bitcoin and other digital investment products have responded in kind, posting significant inflows as investors bet on a Trump-led administration’s crypto-friendly agenda.

Bitcoin Climbs Above $64,000

Following a strong September , which ranked among the most profitable months for traders in a decade, crypto enthusiasts were primed for a fresh bullish wave in October, a historically favorable month for the asset class.

Although rising political tensions in the Middle East kept markets under bearish pressure for the first two weeks, the tide appears to be turning, with Bitcoin recouping losses and surging above $64,000, nearing its monthly high of about $66,000.

With less than a month to go before the U.S. presidential election, crypto markets are eyeing a potential resurgence of bullish momentum.

This could spark the second leg of the bull run, building on the momentum established after the Bitcoin halving event. The stage is set for a potentially decisive period for digital assets, with the election outcome likely to shape market sentiment.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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