Key Points
- Cryptocurrency investment inflows reached $2.19 billion last week, with year-to-date net inflows totaling $33.5 billion.
- Bitcoin’s dominance was reinforced with inflows of $1.48 billion amid a record price of $93,477.
The recent U.S. election has had a significant impact on the cryptocurrency market, resulting in a boost in investor activity.
Impressive Inflows in Crypto Investment
Last week, global crypto investment products experienced a remarkable inflow of $2.19 billion. This pushed the year-to-date (YTD) net inflows to an extraordinary $33.5 billion. Concurrently, Bitcoin surged to a record-breaking $93,477, driving the total assets under management (AUM) for crypto funds to an estimated $138 billion.
James Butterfill, Head of Research at CoinShares, commented on the surge, attributing it to a mix of relaxed monetary policy and the Republican party’s recent U.S. election victory.
Bitcoin and Ethereum Lead the Charge
Despite significant profit-taking and outflows after Bitcoin’s new all-time high, Bitcoin-focused investment products still attracted $1.48 billion in inflows. Ethereum products also performed well, bringing in $646 million.
On the other hand, products associated with multiple cryptocurrencies experienced $19.4 million in outflows. Binance’s BNB products also saw $400,000 in outflows.
Following the September interest rate cuts, total inflows have reached $11.7 billion. This increase is attributed to the effects of relaxed monetary policies and the Republican Party’s recent U.S. election victory.
Bitcoin ETF Dominance Continues
Bitcoin maintained its market dominance, drawing $1.48 billion in inflows. This was largely due to the strong performance of U.S.-based spot ETFs. BlackRock’s IBIT and Fidelity’s FBTC contributed with $2.1 billion and $4 million in inflows respectively.
Bitcoin’s rally beyond $90,000 also spurred bearish sentiment, leading to $49 million in investments in short Bitcoin products.
Ethereum secured $646 million in inflows, which is attributed to election outcomes and anticipation around the Beam Chain upgrade. Other altcoins like Solana, Ripple, and Cardano also saw steady interest, indicating a continued diversification of investor portfolios.
