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Crypto-related investment products recorded inflows of approximately $407 million, according to CoinShares’ latest weekly report.
James Butterfill, head of research at CoinShares, stated that these strong inflows are likely driven more by political developments, particularly the upcoming US elections, rather than shifts in monetary policy.
Butterfill explained:
“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.”
According to the decentralized predictions platform Polymarket, former President Donald Trump currently holds a 54% chance of winning the Nov. 5 election, compared to Democrat Kamala Harris’s 45.4%.
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Notably, Harris recently announced plans to implement a regulatory framework for crypto and digital assets, specifically focusing on protecting Black men investing in these markets. This initiative is part of her broader Opportunity Agenda, which aims to foster economic growth and wealth creation within the Black male community.
Bitcoin dominates flows
Bitcoin-based investment products dominated last week’s activity, recording net inflows of $419 million and positioning themselves as the “primary beneficiary of recent political shifts.” Meanwhile, short-bitcoin funds recorded net outflows of $6.3 million, indicating a decline in bearish sentiment among investors.
Multi-asset investment products also performed well, marking their 17th consecutive week of net inflows, albeit with a modest $1.5 million. Additionally, blockchain equity ETFs witnessed one of their most significant weekly inflows of the year, attracting $34 million.
However, Ethereum-based products returned to a period of outflows, with $9.8 million exiting funds globally last week. In contrast, altcoins such as Solana, Litecoin, XRP, and Tron saw approximately $2 million in inflows.
Regionally, US-based funds led the surge, contributing $406 million to the total net inflows. Butterfill believes this reflects the politically charged nature of the current market. Furthermore, Canadian crypto investment products also recorded a net inflow of $4.8 million.
