Crypto Fund Inflows Rebound

Net inflows into global crypto funds managed by asset managers like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares surged to $407 million last week. This came after $147 million in outflows the week prior, as reported by CoinShares.

Influence of U.S. Elections on Investments

James Butterfill, CoinShares Head of Research, suggested that investor sentiment is currently more swayed by the approaching U.S. elections rather than monetary policies. He noted, “This trend is evident in the fact that stronger-than-expected economic data had little impact on stemming outflows, whereas the recent U.S. vice presidential debate and a shift in polling towards Republicans — perceived as more supportive of digital assets — led to an immediate boost in inflows and prices.”

U.S.-Based Funds Lead the Charge

Last week’s net inflows were primarily driven by U.S.-based funds, which added $406 million. Canadian crypto products recorded a modest $4.8 million inflow. In contrast, funds from other regions experienced net outflows.

Political Climate and Predictions

According to decentralized prediction platform Polymarket, Republican candidate Donald Trump leads against Democrat Kamala Harris with odds of 54% to 45.4% for the upcoming presidential election on Nov. 5. The platform also indicates a 78% chance of a Republican Senate and a 56% chance of a Democrat-controlled House.

Bitcoin and Multi-Asset Products Perform Well

Bitcoin-centric investment products witnessed inflows of $419 million, marking it as the main beneficiary of shifting political dynamics. Short-bitcoin funds endured net outflows of $6.3 million. Notably, U.S. spot Bitcoin exchange-traded funds accounted for $348.5 million in net inflows, led by BlackRock’s IBIT ETF which alone contributed $140.6 million.

As of now, Bitcoin trades at $64,379, up 2.6% in the last 24 hours and 1.7% over the past week. Multi-asset products marked their 17th consecutive week of net inflows, albeit incrementally at $1.5 million. Additionally, blockchain equity ETFs gained $34 million, likely due to Bitcoin’s price rise.

Conversely, Ethereum-centric products have struggled, witnessing $9.8 million in outflows globally, despite a slight $1.9 million inflow to U.S. spot Ethereum ETFs.

The GMCI 30 index, tracking the top 30 cryptocurrencies, gained 2% over the last 24 hours, reaching 120.16, and has risen 18% over the last week.