Bitcoin Inflows Jump as US Election Draws Investors to Crypto
Investors are turning to digital assets in record numbers amid the uncertainty related to US elections. Currently, the market appears to be influenced more by political factors than the outlook on monetary policy with US$407 million inflow into digital asset investment products. This is according to CoinShares' report highlighting digital asset fund flows. A surprising turn in the polls, favoring Republicans who are perceived as more supportive of digital assets, has reportedly boosted Bitcoin and blockchain-related investments.BitcoinBitcoin experienced inflows of US$419 million, marking a significant uptick as investors responded to the political shifts in the US. With the upcoming elections creating a potential turning point in how digital assets are regulated and perceived, the top crypto is attracting more investors seeking to hedge against uncertainty.Conversely, short-Bitcoin products, which are designed to profit from declines in Bitcoin's price, saw US$6.3 million in outflows. This indicates that market participants expect Bitcoin's price to rise, likely driven by political developments.The US was overwhelmingly the primary source of the inflows, accounting for US$406 million of the total. Canada, although much smaller in scale, also saw a positive trend, recording inflows of US$4.8 million.While Bitcoin saw a massive uptick in inflows, other digital assets painted a more mixed picture. Ethereum, the second-largest cryptocurrency, continued its trend of outflows, recording US$9.8 million in withdrawals. This suggests that despite Bitcoin's success, Ethereum is facing headwinds, possibly due to its different use cases and investor base. ETFs On the other hand, multi-asset investment products experienced a smaller but consistent inflow of US$1.5 million, marking the 17th consecutive week of positive inflows. These products, which typically offer exposure to a basket of digital assets, may appeal to investors seeking diversification.Blockchain-related equity exchange-traded funds (ETFs) also had a strong week, pulling in US$34 million—their largest inflow this year. This is likely a result of Bitcoin's recent price increase, which has reignited interest in blockchain technology and the companies building on it. This article was written by Jared Kirui at www.financemagnates.com.
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Investors are turning to digital assets in record numbers amid the uncertainty related to US elections. Currently, the market appears to be influenced more by political factors than the outlook on monetary policy with US$407 million inflow into digital asset investment products.
This is according to CoinShares' report highlighting digital asset fund flows. A surprising turn in the polls, favoring Republicans who are perceived as more supportive of digital assets, has reportedly boosted Bitcoin and blockchain-related investments.
Bitcoin
Bitcoin experienced inflows of US$419 million, marking a significant uptick as investors responded to the political shifts in the US. With the upcoming elections creating a potential turning point in how digital assets are regulated and perceived, the top crypto is attracting more investors seeking to hedge against uncertainty.
Conversely, short-Bitcoin products, which are designed to profit from declines in Bitcoin's price, saw US$6.3 million in outflows. This indicates that market participants expect Bitcoin's price to rise, likely driven by political developments.
The US was overwhelmingly the primary source of the inflows, accounting for US$406 million of the total. Canada, although much smaller in scale, also saw a positive trend, recording inflows of US$4.8 million.
While Bitcoin saw a massive uptick in inflows, other digital assets painted a more mixed picture. Ethereum, the second-largest cryptocurrency, continued its trend of outflows, recording US$9.8 million in withdrawals. This suggests that despite Bitcoin's success, Ethereum is facing headwinds, possibly due to its different use cases and investor base.
ETFs
On the other hand, multi-asset investment products experienced a smaller but consistent inflow of US$1.5 million, marking the 17th consecutive week of positive inflows. These products, which typically offer exposure to a basket of digital assets, may appeal to investors seeking diversification.
Blockchain-related equity exchange-traded funds (ETFs) also had a strong week, pulling in US$34 million—their largest inflow this year. This is likely a result of Bitcoin's recent price increase, which has reignited interest in blockchain technology and the companies building on it. This article was written by Jared Kirui at www.financemagnates.com.
