Bitcoin investment products saw a surge in inflows, topping $407 million last week, according to the latest report from CoinShares.
The spike in investment is being attributed to the political landscape in the U.S., with the upcoming presidential election playing a key role in driving the momentum.
CoinShares’ head of research, James Butterfill, pointed out that the inflows were less influenced by economic data and more by political developments, particularly following the recent U.S. vice presidential debate.
With polling showing a shift towards the Republican party—seen as more favourable to digital assets—investors responded quickly, boosting Bitcoin prices and inflows.
Butterfill noted, “Stronger-than-expected economic data had little effect on the market, but political shifts, especially surrounding digital asset policies, immediately sparked higher inflows.”
This suggests that investors are closely watching how the U.S. election could impact the future of crypto regulation and market growth.
Notably, Bitcoin was the biggest beneficiary of this political climate, with $419 million in inflows, reinforcing its dominance in the crypto space.
In contrast, short-Bitcoin products saw outflows of $6.3 million, signalling waning bearish sentiment. Multi-asset investment products also performed well, marking their 17th consecutive week of inflows.
However, Ethereum-based products continued to experience outflows, losing $9.8 million globally. Altcoins like Solana, Litecoin, and XRP bucked the trend, attracting modest inflows of around $2 million.
Meanwhile, blockchain equity ETFs also had a strong week, bringing in $34 million, one of the highest this year.
Regionally, U.S.-based crypto funds led the charge, contributing $406 million to the total inflows, a reflection of the politically charged market. Canadian investment products also saw positive movement, with a net inflow of $4.8 million.
With the U.S. elections just weeks away, the crypto market is likely to remain volatile as investors weigh the potential impact of new policies on digital assets.
