Digital Asset Inflows Surge to $407M Amid Investor Sentiment Driven by U.S. Election
Bitcoin
ETFs
Inflows
Bitcoin emerged as the main recipient, attracting $419 million in inflows.
Investors are increasingly influenced by political developments rather than monetary policy outlooks, leading to a significant surge in inflows for digital asset investment products. A recent report by CoinShares highlights this trend, revealing that investor sentiment surrounding the upcoming U.S. elections is the driving force behind the increase in inflows.
Surprisingly, even stronger-than-expected economic data failed to reverse the outflows, while a shift in polling towards Republicans, who are perceived as more favorable to digital assets, triggered a rapid rise in both inflows and asset prices.
The United States is leading the way in terms of inflows, accounting for the majority with $406 million, followed by Canada with $4.8 million. Bitcoin remains the primary beneficiary, attracting $419 million in inflows.
Optimism about Bitcoin’s future is reflected in the outflows experienced by short-Bitcoin products, which amounted to $6.3 million.
Multi-asset investment products continue to experience inflows for the 17th consecutive week, albeit modest at $1.5 million. However, Ethereum continues to see outflows, totaling $9.8 million.
Furthermore, blockchain equity ETFs saw one of their highest weekly inflows of the year, attracting $34 million, likely due to the rising prices of Bitcoin.
Bitcoin ETFs witnessed significant inflows on Friday, October 11, with a daily net inflow total of $253.54 million, bringing the cumulative total to $18.81 billion. The total value traded on that day reached $2.06 billion, and the net assets of Bitcoin ETFs amounted to $58.66 billion, representing 4.71% of Bitcoin’s market cap.
Among the top performers, Fidelity’s FBTC ETF stood out with the largest one-day net inflow of $117.10 million, and net assets totaling $11.35 billion. On the other hand, Grayscale’s GBTC experienced an outflow of $22.09 million.
In contrast, Ethereum ETFs experienced a decline. The daily net outflow was $97.11K, and the cumulative net outflow reached $558.88 million. Fidelity’s FETH ETF attracted $8.61 million in net inflows, bringing its cumulative total to $454.50 million. Conversely, Grayscale’s ETHE saw a one-day outflow of $8.71 million, resulting in a cumulative net outflow of $2.98 billion.
A recent survey commissioned by Charles Schwab revealed that nearly half of U.S. investors plan to invest in crypto ETFs in the next year, surpassing demand for bonds and alternative assets. The survey also showed that millennial ETF investors are particularly enthusiastic about crypto, with 62% planning to allocate funds to the sector.
Overall, the growing interest in crypto ETFs demonstrates the changing landscape of investment preferences among U.S. investors, with digital assets becoming an increasingly popular choice.