Crypto Investment Inflows Surge to Three-Month High, Exceeding $2 Billion on US Election Optimism

Global digital asset investment products saw inflows rise to $2.2 billion last week, marking a three-month high and the largest weekly inflow since July, according to a recent report by CoinShares. This surge is driven by growing optimism ahead of the US elections, with many investors betting on favorable outcomes for the cryptocurrency market.

James Butterfill, CoinShares’ Head of Research, pointed to increasing confidence in a potential Republican victory, which many perceive as a pro-crypto development. According to Polymarket, a blockchain-based prediction platform, Republican presidential candidate Donald Trump has a 61% chance of winning, and the party has a 43% chance of securing broader electoral success.

This optimistic outlook spurred a 30% increase in crypto trading volumes, pushing total assets under management (AUM) in the space close to $100 billion.

Bitcoin Leads Inflows, Ethereum Rebounds

The surge in inflows was largely concentrated in US-traded Bitcoin ETFs, which saw $2.13 billion in new investments over six consecutive days of growth. This marked the first time weekly inflows for Bitcoin ETFs crossed the $2 billion threshold since March 2024.

While US exchange-traded products (ETPs) enjoyed robust inflows, crypto products in other regions, including Canada, Sweden, and Switzerland, experienced outflows of $20 million, $18 million, and $15 million, respectively. Butterfill attributed these outflows to "minor profit-taking" outside the US.

Meanwhile, Bitcoin’s approach toward the $70,000 price level attracted both bullish and bearish investors. Short traders, betting on a potential downturn, contributed $12 million to Short Bitcoin products, signaling some caution in the market.

Ethereum, which had seen recent outflows, reversed the trend with $58 million in new investments. This brought Ethereum’s month-to-date inflows to $22.5 million, and it has attracted $783 million since the start of the year.

Other leading altcoins also posted gains, with Solana, Litecoin, and XRP seeing inflows of $2.4 million, $1.7 million, and $700,000, respectively.