Crypto investment products see $407m in inflows as investors shift focus from monetary policy

CoinShares analysts say $407 million inflows were recorded into global crypto investment products, largely influenced by the upcoming US elections rather than monetary policy.

Asset managers such as BlackRock, Fidelity and Grayscale, among others, experienced a strong inflow of $407 million, signaling a shift in investor focus from traditional monetary policy considerations to the upcoming US elections, CoinShares head of research James Butterfill noted in a blog report. On Monday, October 14th.

The data reflects growing optimism about political developments, particularly as the recent vice presidential debate and a poll shift in favor of Republicans generally seen as more supportive of crypto have triggered renewed interest.

“The fact that stronger-than-expected economic data had little effect in preventing outflows clearly reveals this trend.” […].”

James Butterfill

As expected, Bitcoin (BTC) received the most inflows at $419 million, positioning itself as the primary beneficiary of these political shifts. Butterfill said Ethereum (ETH) “continues its breakout trend,” with a total of $9.8 million last week.

Short-Bitcoin investment products also faced outflows totaling $6.3 million, highlighting a clear difference in investor sentiment.

Despite stronger-than-expected economic data typically impacting market behavior, this time it did little to stem outflows from other asset classes. The intensification of cryptocurrency inflows appears to reveal a changing narrative in which investors are prioritizing political events over economic indicators.

The United States accounted for a significant portion of inflows at $406 million, while Canada contributed a modest $4.8 million. Multi-asset investment products continued their upward trend with inflows for the 17th consecutive week, albeit at a small level of $1.5 million.

Butterfill noted that blockchain stock exchange-traded funds saw “one of the largest weekly inflows this year,” allocating $34 million, which was likely triggered “in response to recent Bitcoin price increases.”