US political landscape fuels $901m inflows into crypto funds

Crypto investment products saw inflows of $901 million this month, the fourth-largest inflows in history, according to CoinShares data.

Crypto investment products recorded $901 million inflows in October; this was the fourth largest month on record and accounted for 12% of total assets under management. Data from CoinShares shows that year-to-date inflows now total $27 billion, nearly triple the previous record of $10.5 billion set in 2021.

James Butterfill, head of research at CoinShares, said current Bitcoin (BTC) prices and flows are “heavily influenced by US policies, and the recent increase in inflows is likely linked to Republican poll gains.”

“The focus was almost entirely on Bitcoin, which saw inflows of $920 million.”

James Butterfill

While the United States led the inflow increase with $906 million, other regions had a mixed performance. Germany and Switzerland saw inflows of $14.7 million and $9.2 million respectively. In contrast, Canada, Brazil and Hong Kong experienced modest outflows of $10.1 million, $3.6 million and $2.7 million.

Data shows that the positive sentiment surrounding Bitcoin has not extended to Ethereum (ETH), which recorded the largest outflow among digital assets last week, totaling $35 million. On the other hand, Solana (SOL) attracted attention with an entry of 10.8 million dollars. Meanwhile, blockchain stocks have shown signs of recovery, with inflows reaching $12.2 million last week, gaining positive momentum in this sector for the third consecutive week, according to CoinShares.

Meanwhile, activity among Bitcoin whales has decreased sharply; Data from IntoTheBlock reveals that net inflows for large holders dropped from approximately 38,800 BTC on October 20 to just 258 BTC on October 26. This suggests that whales are feeling nervous about US Election Day. approaches.