Optimism for Republican victory drives $2.2 billion in weekly inflows to BTC and ETH products

As the US presidential race heats up with less than a month to go before Election Day, data from last week suggests digital asset inflows have surged to $2.2 billion.

This number marked the highest level since July, spurred by optimism of a potential Republican success in the election.

Entry surge amid US election optimism

According to the latest edition of CoinShares’ Weekly Digital Asset Fund Flows Report, trading volumes for investment products have increased by 30%, leading to price appreciation, which brings total assets under management close to $100 billion. The distribution of these entries, however, varied greatly by region. The United States was a clear leader for the week, registering $2.3 billion in inflows.

Digital Asset Manager said:

“We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming US elections, as they are generally seen as more favorable to digital assets.”

Australia also saw a modest inflow of $1.4 million, becoming the only other country to experience a positive flow. On the other hand, almost all other nations recorded smaller outflows, with Canada, Sweden and Switzerland leading the way with outflows of $20 million, $18 million and $15 million, respectively.

In addition, Brazil and Germany also saw outflows of $9 million and $6 million, while Hong Kong had a smaller outflow of $1.5 million during the same period.

Bitcoin leads while multi-asset products face a pullback

Bitcoin led the market with inflows of $2.13 billion over the past week. The price surge also sparked interest in short bitcoin products, which attracted $12 million. Interestingly, this was the biggest inflow since March. Ethereum also benefited, registering $58 million in inflows.

Several altcoins followed suit, with Solana getting $2.4 million, Litecoin with $1.7 million, and XRP bringing in $700,000. In contrast, multi-asset products faced weekly outflows of $5.3 million, ending its impressive 17-week streak of continuous inflows.

Cardano and Binance also recorded outflows of $1.5 million and $0.8 million respectively.

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