Cryptocurrency investment products experienced their highest level of inflows since July, reaching $2.2 billion per week, as reported by CoinShares, a crypto investment firm. CoinShares’ Digital Asset Fund Flows Weekly Report on October 21 revealed that digital investment products continue to show positive growth, largely due to optimism surrounding a potential Republican victory in the upcoming US elections. The Republican Party is generally considered to be more supportive of digital assets, which has led to renewed confidence in the market.
During the week of October 12-18, the United States led the way in crypto product investments, with inflows totaling $2.3 billion. In contrast, Canada and Sweden experienced outflows of $19.9 million and $18.2 million, respectively. Australia was the only other country to record positive investments, with inflows of $1.4 million.
CoinShares attributes the minor outflows in certain jurisdictions, such as Canada, to profit-taking, as the bullish crypto market was largely driven by the US. This positive market momentum has resulted in a 30% increase in trading volumes for investment products. Furthermore, the price appreciation and inflows have brought the total assets under management close to the $100 billion mark.
Among the various crypto investment products, Bitcoin (BTC) emerged as the top performer last week, attracting $2.13 billion in inflows. The largest investment activity came from BlackRock’s iShares Bitcoin exchange-traded fund (ETF) in the US, which saw inflows of $1.19 billion in just one week. Ether (ETH)-based crypto products also experienced inflows of $58 million, while short-Bitcoin inflows reached $12 million, the highest since March. However, multi-asset crypto investment products saw outflows of $5.3 million, ending a 17-week streak of consecutive inflows.
In October alone, crypto investment products have added a total of $2.4 billion, a trend that aligns with the usual market growth seen during “Uptober.” This surge in investments has also been accompanied by fraudulent activities, such as the Fake Rabby Wallet scam, which has affected several victims, including a crypto CEO from Dubai.
Overall, the cryptocurrency market continues to thrive, driven by positive investor sentiment and the anticipation of a Republican victory in the US elections.