According to CoinShares’ Digital Asset Fund Flows Weekly Report, this surge was attributed to growing optimism about a potential Republican win in the upcoming U.S. elections and has sparked renewed interest in digital assets.
Cryptocurrency investment products recorded a major spike in inflows last week, reaching $2.2 billion, the highest inflow recorded since July.
“We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming U.S. elections, as they are generally viewed as more supportive of digital assets,” James Butterfill, head of research at CoinShares, stated.
This is because the political climate in the U.S. has significantly impacted crypto investment dynamics.
The report revealed that the United States led this surge, with inflows of $2.3 billion. Australia is another country that recorded inflows of $1.4 million in that same period. Meanwhile, countries like Canada and Sweden saw heavy outflows of 19.9 million and $18.2 million, respectively.
This political sentiment contributed to the largest weekly inflows into crypto products since July, when $1.3 billion in inflows were recorded in one week.
CoinShares also reported that Ether-based products saw inflows of $58 million, while short-Bitcoin inflows reached $12 million, marking the largest inflows in this segment since March 2024.
Bitcoin continued to dominate the crypto market, securing $2.13 billion of the total inflows for the week.