- Crypto investment inflows amounted to $2.19 billion, and net inflows since the beginning of this year rose to $33.5 billion.
- Bitcoin’s dominance was strengthened with inflows of $1.48 billion at an all-time high of $93,477.
The recent US elections have significantly affected the cryptocurrency market, leading to an increase in investor activity.
Global crypto investment products witnessed an impressive $2.19 billion inflows last week, pushing net inflows year-to-date (YTD) to an unprecedented $33.5 billion, as highlighted in the latest release of CoinShares . report.
This momentum matched Bitcoin [BTC]’s meteoric rise to a record-breaking $93,477, pushing total assets under management (AUM) for crypto funds to an estimated $138 billion.
James Butterfill, head of research at CoinShares, noted the same:
“This recent surge in activity appears to be driven by a combination of looser monetary policy and the Republican Party’s cleanliness in the recent US elections.”
Cryptocurrency inflows are increasing
The report revealed a dynamic week for crypto investment products. Inflows initially amounted to $3 billion, but Bitcoin’s new all-time high led to significant profit-taking and outflows.
Nevertheless, Bitcoin-focused investment products attracted $1.48 billion, while Ethereum did [ETH] products generated inflows of $646 million.
In contrast, products tied to multiple cryptocurrencies saw outflows of $19.4 million, and Binance’s BNB products saw outflows of $400,000.
That said, total inflows since September’s rate cuts have reached $11.7 billion.
The report attributes this increase to the effects of loose monetary policy and the decisive victory of the Republican Party in the recent US elections, indicating a notable shift in market sentiment.
Bitcoin ETF dominance reigns supreme
Bitcoin maintained its market dominance as expected, attracting $1.48 billion in inflows, largely thanks to the strong performance of US-based spot ETFs.
CoinShares data shows BlackRock’s IBIT contributing $2.1 billion and Fidelity’s FBTC contributing $4 million. Meanwhile, funds like Ark 21Shares and Grayscale saw outflows of $153 million and $108 million respectively.
Bitcoin’s rally above $90,000 also created bearish sentiment, prompting $49 million in investments in short Bitcoin products.
Ethereum followed closely behind, generating $646 million in inflows, attributed to the election results and anticipation surrounding the Beam Chain upgrade.
Other altcoins like Solana [SOL]Ripple [XRP]and Cardano [ADA] showed steady interest, with inflows of $24 million, $4.3 million and $3.4 million respectively, indicating continued diversification of investor portfolios.
In conclusion, Buterfill said it best when he said,
“The next four years could witness unprecedented levels of institutional support, increased government interest and broader public adoption, paving the way for Bitcoin to further cement its place in the global financial landscape.”