CoinShares: US political landscape fuels $901m inflows into crypto funds

As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by the latest developments in the crypto space. The $901 million inflow into crypto investment products this October is indeed noteworthy, especially considering it accounts for 12% of total assets under management. This surge, primarily driven by Bitcoin, seems to be heavily influenced by U.S. politics, as suggested by James Butterfill’s insightful comments.


This month saw an influx of approximately $901 million into crypto investment items, which is the fourth-highest amount ever recorded according to information provided by CoinShares.

As a crypto investor, I’ve been keeping a close eye on the market and it seems that October has been a significant month for us. With inflows amounting to an impressive $901 million, it ranks as the fourth-largest inflow month in history. This represents a substantial 12% of the total assets under management.

According to James Butterfill, who leads research at CoinShares, the current market trends for Bitcoin (BTC) appear to be significantly affected by American politics. The recent increase in inflows might be associated with the growing popularity of the Republican party.

“The focus was almost entirely on Bitcoin, which saw inflows of $920 million.”

James Butterfill

The United States led the inflow surge, attracting $906 million, while other regions displayed a mixed performance. Germany and Switzerland saw inflows of $14.7 million and $9.2 million, respectively. In contrast, Canada, Brazil, and Hong Kong experienced modest outflows of $10.1 million, $3.6 million, and $2.7 million.

Last week, Bitcoin’s optimistic mood didn’t translate to Ethereum (ETH), as it experienced the largest withdrawals among digital assets worth about $35 million. On the other hand, Solana (SOL) attracted investments with inflows of approximately $10.8 million. Moreover, blockchain stocks indicated a rebound, with inflows amounting to $12.2 million last week, representing the third straight week of growth in this market sector, according to CoinShares’ data.

Currently, there’s a significant drop in Bitcoin transactions among large investors (whales). Data from IntoTheBlock shows that the inflow of Bitcoin to these big holders decreased dramatically from about 38,800 BTC on October 20th to only 258 BTC by October 26th. This decrease could indicate that whales are becoming apprehensive as the U.S. Election Day draws near.

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2024-10-28 14:10