Digital Asset Inflows Reach Record $31.3bn YTD Following Post-Election Surge

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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November 10, 2024

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Digital asset investment products have attracted a robust $1.98 billion in the past week, marking the fifth consecutive week of inflows.

The influx brings the year-to-date figure to a record $31.3 billion, according to a recent report from CoinShares.

The surge in investments has pushed the global assets under management to a new peak of $116 billion.

Trading Volume Reach $20 Billion

Despite not setting a new record, trading volumes have climbed to their highest since April, reaching $20 billion.

The majority of these inflows have been concentrated in the US, with substantial contributions also coming from Europe, particularly Switzerland and Germany, which reported inflows of $23 million and $20 million, respectively.

Bitcoin led the charge with inflows totaling $1.8 billion, buoyed by a favorable macroeconomic environment and recent US political shifts.

Since the US Federal Reserve’s interest rate cut in September—the first of this cycle—Bitcoin has seen a total of $9 billion in inflows.

Notably, spot Bitcoin ETFs have seen significant inflows since the start of November.

Major daily net inflows include $1.38 billion on November 7, $893.21 million on October 30, $870.02 million on October 29, and $621.90 million on November 6.

Despite occasional outflows like $541.07 million on November 4, the upward trend reflects increasing confidence in Bitcoin.

Ethereum also showed signs of recovery, registering its highest inflow since the ETF launches in July, with $157 million last week.

Additionally, a variety of altcoins including Solana, Uniswap, and Tron experienced notable inflows, while blockchain equities attracted $61 million, indicating a broadening base of investor confidence across the digital asset spectrum.

Bitcoin Surges to $82,000 Amid Bullish Sentiment

On Monday, Bitcoin soared to a new all-time high above $82,000, fueled by growing optimism from U.S. elections that brought several pro-crypto candidates into office.

The rally was mirrored by significant activity in futures markets, with open interest for bitcoin surpassing $90,000 on the Deribit exchange exceeding $2.8 billion.

The options market revealed a strong bias toward continued upward momentum, as call options—which bet on price increases—traded at a premium to puts.

Vetle Lunde, head of research at K33 Research, told CNBC that out-of-the-money calls saw increased open interest, reflecting the bullish sentiment.

The CME derivatives exchange, favored by institutional investors in the U.S., also saw heightened premiums for bitcoin and ether futures contracts.

Premiums for these contracts averaged 14% and 14.5%, respectively, a significant increase from pre-election levels of around 7%.

According to Lunde, this shift highlights the bullish flows driving the market.

The growing yields in offshore derivatives markets further suggest that risk-takers are positioning for continued price gains, as leverage increases alongside stable double-digit yields.

“Alongside the growth in leverage, we saw the first meaningful example of growing yields in offshore derivatives, indicative of the move being led by determined risk-takers positioning for further upside,” said Velde.