Global Crypto Funds Inflow

Global crypto funds managed by institutions like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares saw net inflows of $901 million last week, as reported by CoinShares.

October Inflows

Over $3.36 billion has been added to digital asset investment products in October, accounting for 12% of the assets under management at these funds, marking the fourth-largest month on record. Year-to-date inflows have reached $27 billion, nearly triple the previous record of $10.5 billion set in 2021.

Weekly Asset Flows

Bitcoin funds led the way, attracting $920 million in net weekly inflows globally, while short-bitcoin positions experienced a slight outflow of $1.3 million. Additionally, blockchain equities and Solana products gained net inflows of $12.2 million and $10.8 million, respectively. Ethereum-based funds, however, faced net outflows of $34.7 million as the ETH/BTC ratio hit its lowest since April 2021.

U.S. Market Performance

U.S. spot bitcoin exchange-traded funds (ETFs) alone brought in $997.6 million in net weekly inflows, primarily driven by BlackRock's IBIT. Overall, U.S.-based crypto investment products gained $906 million in inflows, while other bitcoin-related products reported negative flows, particularly from Sweden, Canada, Brazil, and Hong Kong with a total of $29.1 million in outflows.

As of now, bitcoin is trading at $68,554, reflecting a 2.2% increase over the last 24 hours, an 8.2% rise this month, and 62.2% year-to-date.

Political Influence on Inflows

CoinShares Head of Research, James Butterfill, suggests that current bitcoin prices and inflow patterns are largely influenced by U.S. political events. He noted that the recent increase in inflows seems tied to the Republican Party's favorable polling.

Republican candidate Donald Trump currently leads against Democrat Kamala Harris, with odds showing a potential victory on Nov. 5: 66.5% for Trump compared to 33.4% for Harris. Trump has also outperformed in six vital swing states, with predictions indicating an 84% chance of a Republican Senate and a 52% chance of a Republican House.

In contrast, national polling averages depict a tight race, with Harris edging out Trump 48.1% to 46.7%. This narrowing gap shows a decrease from Harris's previous peak lead of 3.7% on Aug. 23. Analysts note that traditional polls have historically underestimated Trump's support.