Cryptocurrency investment products recorded their biggest inflows since July, hitting the $2.2 billion weekly mark, according to crypto investment firm CoinShares.
Digital investment products continue on a positive trend amid optimism over a potential Republican election win in the United States election, CoinShares said in its Digital Asset Fund Flows Weekly Report on Oct. 21.
“We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming US elections, as they are generally viewed as more supportive of digital assets,” wrote CoinShares’ head of research, James Butterfill.
US leads investments with $2.3 billion inflows
The US led the surge in crypto product investments during the week of Oct. 12–18, with inflows hitting $2.3 billion. Other regions, including Canada and Sweden, saw outflows of $19.9 million and $18.2 million, respectively.
Australia was the only other country that recorded positive investments, with $1.4 million in inflows.
Flows by jurisdictions (in millions of US dollars). Source: CoinShares
According to CoinShares, the minor outflows in jurisdictions like Canada were probably due to profit-taking amid bullish crypto market action driven by the US.
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“This, in turn, has led to positive price momentum. As a result, trading volumes in investment products surged by 30%, while price appreciation and inflows have brought total assets under management close to the $100 billion threshold,” CoinShares’ Butterfill said.
Bitcoin is the biggest winner, with $2.13 billion in inflows
Among various crypto investment products, Bitcoin (BTC) was again the biggest winner last week, with $2.13 billion in inflows.
The largest investment activity came from BlackRock’s iShares Bitcoin exchange-traded fund (ETF) in the US, which saw $1.19 billion of inflows in one week.
Flows by assets (in millions of US dollars). Source: CoinShares
Ether (ETH)-based crypto products saw inflows of $58 million, while short-Bitcoin inflows hit $12 million, or the largest since March, according to CoinShares. Multi-asset crypto investment products saw outflows of $5.3million, ending a 17-week streak of consecutive inflows.
With the latest inflows, crypto investment products have added a total of $2.4 billion in October, which aligns with the “Uptober” crypto trend usually seen during the month.
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