- Bitcoin attracted $419 million in inflows last week, making it the primary beneficiary of a positive political climate.
- Ethereum experienced $9.8 million in outflows, continuing a trend while Bitcoin surged over 2% in price.
- Digital asset investment products saw $407 million in total inflows, reversing the $127 million sell-off from the previous week.
Digital asset investment products witnessed a substantial inflow from October 5 to October 11, with BTC leading in inflows. In a recent weekly report of Digital Asset Fund Flows by CoinShares, inflows totaled $407 million after an outflow of $127 million the week before. The statement was released on October 14, pointing out that Bitcoin had the most inflows with $419 million.
Such inflows happened while actual figures raised expectations of the American economy’s performance, which did not prevent individuals from investing in digital currencies. The inflows suggest investors have sustained demand for the sector after recent market fluctuations.
Political Climate Fuels Increased Investments
CoinShares’ head of research, James Butterfill, noted that political factors in the United States likely influenced the recent surge in crypto investment products. While economic data often affects market movements, the upcoming U.S. elections appeared to play a more significant role in driving the inflows. Butterfill attributed the spike in interest to polling that indicates Republicans may take control of the Senate after the November elections, a development many view as favorable for the cryptocurrency sector.
According to the report, the possible political change has positively influenced the flow, especially for Bitcoin. Historically, the Republicans are believed to support digital assets, and the possibility of a Republican Senate has sparked optimism for investors.
Bitcoin Emerges as the Leading Beneficiary
Interestingly, amid political changes, Bitcoin has become the biggest gainer, with $419 million recorded as net inflows during the period. This is a relief after a certain measure of outflows over the preceding time. On the other hand, investment products focused on short-term investments in Bitcoin reflected redemptions of $6.3 million, meaning that investors are now more optimistic about Bitcoin.
In addition to Bitcoin, blockchain equity exchange-traded funds (ETFs) also saw a significant inflow, with $34 million recorded during the week, making it one of the largest weekly inflows for blockchain ETFs in 2024. This rise coincided with a more than 2% increase in Bitcoin’s price, from $61,900 on Oct. 6 to roughly $63,300 by Oct. 12.
The post Bitcoin Drives $407 Million Weekly Inflows in Cryptocurrency Investment Products appeared first on Crypto News Land.
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