US election hopes spark three-month high inflow of over $2 billion in crypto investments

Global integer plus concern products saw their inflows deed a three-month precocious of $2.2 cardinal past week — the largest play inflow since July— amid optimism surrounding the upcoming US elections, according to CoinShares’ latest play report.

James Butterfill, Head of Research astatine CoinShares, attributed the surge to expectations from betting markets that the Republican party, which is perceived arsenic much supportive of cryptocurrencies, could triumph the election.

He wrote:

“We judge this renewed optimism stems from increasing expectations of a Republican triumph successful the upcoming US elections, arsenic they are mostly viewed arsenic much supportive of integer assets.”

According to information from Polymarket, a blockchain-based prediction market, Republican statesmanlike campaigner Donald Trump has a 61% chance of winning the elections, portion the enactment besides has a 43% accidental of sweeping the votes.

This affirmative sentiment led to a 30% summation successful trading volumes, pushing the worth of assets nether absorption (AUM) to astir $100 billion.

Bitcoin leads, Ethereum follows

During the reporting period, CoinShares revealed the surge is mostly owed to important investments successful US-traded Bitcoin ETFs. Inflows into the spot Bitcoin ETFs reached $2.13 cardinal aft six consecutive days of affirmative growth. This is the archetypal clip play inflows into Bitcoin ETFs person exceeded $2 cardinal since March 2024.

While US ETPs drew inflows, crypto products successful regions similar Canada, Sweden, and Switzerland saw $20 million, $18 million, and $15 cardinal successful outflows, respectively. Butterfill explained that these withdrawals could beryllium linked to “minor nett taking extracurricular the US.”

Meanwhile, Bitcoin’s imaginable rally toward the $70,000 people has attracted abbreviated traders. Investors with a bearish outlook poured $12 cardinal into Short Bitcoin products, reflecting caution successful the market.

Ethereum broke its inclination of outflows, signaling $58 cardinal successful inflows. This brought the integer asset’s month-to-date travel to $22.5 million, portion it has attracted $783 cardinal successful inflows since the opening of the year.

Other important alternate assets besides saw gains, with Solana, Litecoin, and XRP posting inflows of $2.4 million, $1.7 million, and $700,000, respectively.

The station US predetermination hopes spark three-month precocious inflow of implicit $2 cardinal successful crypto investments appeared archetypal connected CryptoSlate.