- Crypto investment products gained $407 million in inflows from Oct. 5–11, led by Bitcoin.
- Political factors, including the US election and Republican polling gains, contributed to the increased inflows.
- Bitcoin’s price rose over 2% during the same period, with blockchain ETFs seeing strong demand.
The week of October 5 to 11 saw a significant rise in cryptocurrency investment products, with total inflows reaching $407 million, according to a report released by CoinShares on October 14. Bitcoin led the surge, accounting for $419 million of the inflows, marking a positive shift after a brief sell-off the previous week.
Political Landscape Fuels Bitcoin Inflows
According to James Butterfill, CoinShares’ head of research, the increasing inflows were influenced more by political factors than economic developments. He pointed to the upcoming US elections, where polls indicate that Republicans may take control of the Senate. Butterfill suggested that the potential shift toward Republican leadership, often seen as more supportive of digital assets, contributed to the surge in investment interest.
Major media outlets, such as The New York Times, reported on October 10 that polling data showed Republicans ahead in key races. This political shift appears to have boosted confidence in the digital asset market, particularly in Bitcoin, which was described as the “primary beneficiary” of these developments.
Bitcoin and Blockchain ETFs See Increased Demand
Bitcoin’s price saw a 2% increase during the same period, rising from $61,900 on October 6 to approximately $63,300 by October 12. Blockchain equity exchange-traded funds (ETFs) also experienced one of their strongest weeks of 2024, attracting $34 million in inflows.
Meanwhile, multi-asset investment products continued to see minor but steady inflows, marking 17 consecutive weeks of gains for that asset class. Ethereum, however, did not share in the positive momentum, with $9.8 million in outflows recorded for Ether products during the same week.
The latest figures continue a broader trend that started in mid-September, with nearly $2 billion flowing into crypto investment products between September 7 and September 28.
