Global crypto funds run by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares registered net inflows of $2.2 billion last week — the largest since July, according to CoinShares.
“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,” CoinShares Head of Research James Butterfill noted on Monday, reiterating his recent views.
In turn, this has led to positive price momentum, with trading volume for the investment products surging by 30% for the week while total assets under management close in on the $100 billion threshold globally, Butterfill added.
Weekly crypto asset flows. Images: CoinShares.
Republican candidate Donald Trump currently leads Democrat Kamala Harris by odds of 61.5% to 38.6% to win the presidential election on Nov. 5, according to the decentralized predictions platform Polymarket. The former President has also taken the lead in all six swing states, with Polymarket showing 82% odds of a Republican Senate, 51% odds of a Democrat House and a 43% chance of a Republican sweep compared to 14% for the Democrats.
However, the latest national polling averages continue to call a close race, with numbers within the margin of error showing a 2% advantage to Harris, according to analysts at Bernstein.
U.S. presidential election national polling averages. Image: Bernstein.
Polarized regional crypto fund flows picture
Although the U.S.-based funds continue to dominate the market, regional flows painted a polarized picture last week. U.S. investment products saw $2.3 billion of net inflows. At the same time, funds in almost every other country witnessed net outflows, including those in Canada, Sweden and Switzerland, which lost $19.9 million, $18.2 million and $14.9 million, respectively.
As usual, bitcoin-based products were the main beneficiary, with U.S. spot Bitcoin exchange-traded funds adding $2.1 billion last week. BlackRock’s IBIT ETF generated more than $1.1 billion alone, with the ETFs registering an average of $426 million worth of net inflows per day for the week overall.
Last week’s positive flows were the largest since the $2.6 billion generated by the U.S. spot Bitcoin ETFs in the second week of March as bitcoin was approaching its all-time high of nearly $74,000.
Cumulative net inflows into the funds since they began trading in January now stand at a peak of nearly $21 billion, while assets under management are at a record of more than $66 billion.
Bitcoin is currently trading for $68,307, according to The Block's Bitcoin Price Page — up 5.4% over the past week. However, the recent price appreciation also attracted $12 million worth of net inflows into short bitcoin investment products last week — the largest since March, Butterfill noted.
Meanwhile, Ethereum, Solana, Litecoin and XRP-based funds also witnessed net inflows globally, attracting $58 million, $2.4 million, $1.7 million and $0.7 million, respectively. However, multi-asset products saw net outflows of $5.3 million — ending a 17-week streak of consecutive inflows.
The GMCI 30 index, which represents a selection of the top 30 cryptocurrencies, has risen roughly 9% over the past seven days to 127.26.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
