Global Crypto Funds Experience Record Inflows

Global crypto funds managed by firms such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares recorded net inflows of $2.18 billion last week, as per CoinShares, bringing the year-to-date total to an unprecedented $29.2 billion.

James Butterfill, CoinShares Head of Research, noted, "We believe euphoria around the prospect of a Republican victory was the likely reason for these inflows. As polls reversed, we saw minor outflows on Friday, emphasizing Bitcoin's sensitivity to U.S. elections at present."

With the price increase over the past months, total assets under management in these funds have surpassed $100 billion for only the second time, equaling June's peak of $102 billion. Weekly trading volumes surged 67% to $19.2 billion, accounting for 35% of Bitcoin's trading on trusted exchanges, Butterfill added.

The price of Bitcoin has risen more than 30% from a low of $52,600 in early September, currently trading at $68,818. However, it has experienced a 7% decline from $73,500 on October 29 as the odds for a Republican Donald Trump and a Democrat Kamala Harris victory converged on the predictions platform Polymarket.

Analysts at Bernstein highlighted their expectation for Bitcoin to surpass its all-time highs of nearly $74,000, with predictions reaching up to $80,000 to $90,000 in the event of a Trump victory before inauguration day on January 20. In contrast, a victory for Harris could potentially drop Bitcoin to $50,000.

U.S. Dominates Global Inflows

U.S.-based funds led the last week’s net inflows, adding $2.23 billion, while investment products in Canada, Germany, and Switzerland experienced net outflows of $24.4 million, $20.3 million, and $13.8 million, respectively. Bitcoin products significantly benefited, accounting for $2.16 billion in net weekly inflows globally, with U.S. spot Bitcoin exchange-traded funds adding $2.22 billion. There were also $8.9 million in net inflows into short-bitcoin products.

Meanwhile, Ethereum-based investment products reported net inflows of $9.5 million last week, which starkly contrasts with the bullish sentiment seen in Bitcoin or Solana.