FameEX Hot Topics | Digital Asset Inflows for the Week Total $901M, Summing Up to $27B in 2024

CoinShares reports burgeoning bullish sentiment in the digital asset market as the U.S. elections near, potentially spurred by expected Republican gains. Digital asset inflows surged to $901 million in the week ending October 25, primarily driven by Bitcoin, elevating the year-to-date total to an impressive $27 billion.

During this period, Bitcoin alone accounted for $920 million of the inflows, with CoinShares linking this boost directly to the U.S. electoral climate. The report suggests, "Current Bitcoin prices and flows are heavily influenced by US politics, with the recent surge in inflows likely linked to the Republicans’ poll gains."

Geographically, the U.S. led with $906 million in inflows. In contrast, Germany and Switzerland saw smaller increases of $14.7 million and $9.2 million, respectively. Meanwhile, Canada, Brazil, and Hong Kong faced outflows of $10.1 million, $3.6 million, and $2.7 million, respectively. Short positions in Bitcoin saw a slight decrease with outflows of $1.3 million.

BlackRock's iShares Bitcoin Trust remains the preeminent fund, managing assets worth over $28 billion. Collectively, Bitcoin ETFs now oversee $78.9 billion. The inflows in October alone represented 12% of total managed assets, marking it as the fourth-largest month for capital inflows on record. The aggregate inflows for 2024 have nearly tripled the previous record of $10.5 billion set in 2021.

The positive momentum extends beyond Bitcoin to other blockchain equities, which have seen three weeks of consecutive gains, culminating in $12.2 million of inflows by October 25. Solana funds also performed well, attracting $10.8 million. However, Ethereum-based funds deviated from this trend, experiencing the largest outflows, with $35 million withdrawn.

This dynamic financial landscape, influenced by political developments and market sentiment, highlights the significant impact of regulatory and electoral outcomes on cryptocurrency investments as 2024 progresses.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.