Bitcoin continues to dominate the cryptocurrency market with an impressive $407 million in inflows, as reported by CoinShares. These positive flows are largely attributed to the recent political dynamics in the United States, particularly surrounding the upcoming elections. CoinShares’ head of research, James Butterfill, noted that the strong inflows are more influenced by political developments rather than changes in monetary policy.
The recent US vice presidential debate and a shift in polling towards the Republicans, who are perceived as more supportive of digital assets, immediately led to an increase in inflows and prices. Former President Donald Trump is currently favored to win the election according to Polymarket, with a 54% chance compared to Democrat Kamala Harris’s 45.4%. Harris has announced plans to implement a regulatory framework for crypto and digital assets, focusing on protecting Black men in these markets as part of her Opportunity Agenda.
Bitcoin-based investment products saw significant activity, with net inflows of $419 million, making it the primary beneficiary of recent political shifts. On the other hand, short-bitcoin funds experienced net outflows of $6.3 million, indicating a decrease in bearish sentiment among investors. Multi-asset investment products continued their positive streak with modest inflows of $1.5 million, marking their 17th consecutive week of net inflows.
Blockchain equity ETFs also experienced a notable increase in inflows, bringing in $34 million. However, Ethereum-based products faced outflows of $9.8 million globally last week. Despite this, altcoins such as Solana, Litecoin, XRP, and Tron saw around $2 million in inflows, showcasing investor interest in alternative cryptocurrencies.
In terms of regions, US-based funds led the surge with $406 million in net inflows, reflecting the politically charged nature of the current market. Canadian crypto investment products also saw a positive net inflow of $4.8 million. Overall, the cryptocurrency market continues to be influenced by political developments, with Bitcoin remaining a top choice for investors amid election-driven dynamics.