Title: Surge in Digital Asset Inflows Reaches $407 Million Amid U.S. Election-Driven Investor Sentiment
Date: October 14, 2024
Digital asset investment products experienced a remarkable increase in inflows, totaling $407 million, largely influenced by investor sentiment surrounding the upcoming U.S. elections, according to a report by CoinShares.
The report highlights that political developments, rather than monetary policy outlooks, are currently driving investor decisions. Surprisingly, even stronger-than-expected economic data failed to reverse the outflows. However, a recent shift in polling towards Republicans, perceived as more favorable towards digital assets, triggered a rapid surge in both inflows and asset prices.
The United States led in terms of inflows, accounting for the majority with $406 million, followed by Canada with $4.8 million. Bitcoin emerged as the primary beneficiary, attracting $419 million in inflows. In contrast, short-Bitcoin products experienced outflows of $6.3 million, indicating investors’ optimism about Bitcoin’s future.
Multi-asset investment products continued their streak with a 17th consecutive week of inflows, albeit modest at $1.5 million. On the other hand, Ethereum saw continued outflows, totaling $9.8 million.
Furthermore, blockchain equity ETFs recorded one of their highest weekly inflows of the year, attracting $34 million, likely in response to the rising Bitcoin prices.
On October 11, Bitcoin ETFs saw significant inflows, with a daily total net inflow of $253.54 million, pushing the cumulative total to $18.81 billion. The total value traded on that day reached $2.06 billion, while the total 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 experienced the largest one-day net inflow of $117.10 million, with net assets totaling $11.35 billion. Conversely, Grayscale’s GBTC witnessed a notable outflow of $22.09 million.
In contrast, Ethereum ETFs showed a decline, with a daily total net outflow of $97.11K and a cumulative net outflow of $558.88 million. Fidelity’s FETH ETF stood out, attracting $8.61 million in net inflows and pushing its cumulative total to $454.50 million. On the other hand, Grayscale’s ETHE experienced a one-day outflow of $8.71 million, bringing its cumulative net outflow to $2.98 billion.
A recent survey commissioned by financial services giant Charles Schwab revealed that nearly half (45%) of U.S. investors plan to invest in crypto through ETFs over the next year, showcasing increasing interest in ETFs holding cryptocurrencies. This represents an increase from 38% in the previous year. The survey also indicated that the growing interest in crypto has surpassed demand for bonds and alternative assets, with only U.S. equities ranking higher, as 55% of participants expressed plans to invest in stocks.
Millennial ETF investors demonstrated even stronger enthusiasm for crypto, with 62% intending to allocate funds to the sector, compared to 48% for U.S. stocks, 47% for bonds, and 46% for real assets like commodities. On the other hand, baby boomer ETF investors showed significantly less interest in digital assets, with only 15% planning to invest in them.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, described the high ranking of crypto in investment plans as “pretty stunning.”
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