Altcoins struggle as the U.S. drives a $901M surge, signaling shifting sentiment in crypto markets (Photo by Michael M. Santiago/Getty Images)
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Key Takeaways
Bitcoin led October inflows, outshining altcoins significantly.
U.S. election optimism boosts crypto investments, especially in Bitcoin.
Altcoins face outflows, reflecting a shift toward Bitcoin’s stability.
Digital asset investment products surged to a new high in October, with inflows bursting through the $27 billion mark, more than tripling the $10.9 billion total seen in all of 2021.
The month’s euphoric tone, buoyed by growing optimism surrounding the U.S. presidential elections, catapulted October to the fourth-most-bullish month as investors piled into digital assets with renewed fervor.
Bitcoin Investment Outshines Altcoins as October Closes
Crypto investment products saw net inflows of $901 million in the last week of October, with Bitcoin-based products dominating the market—whether through exchange-traded funds or private investments.
According to CoinShares, Bitcoin (BTC) led with $920 million in net inflows, while short-Bitcoin products saw outflows of $1.3 million, suggesting a turn toward bullish sentiment for the asset.
Flows by asset. Source: CoinShares
In contrast, Ethereum (ETH) suffered substantial outflows, losing $35 million, marking its weakest weekly performance in recent months.
Among altcoins, Solana captured investor interest with $10.9 million in inflows, followed by multi-asset products at $2.1 million.
The pivot from altcoin-based products to Bitcoin investments signals growing traditional investor confidence in Bitcoin as the market steadies into year-end.
U.S. Dominates Digital Asset Investments
The U.S. dominated digital asset inflows in the final week of October, with U.S.-based crypto investment products pulling in $906 million, the bulk of global demand.
Flow by country. Source: CoinShares.
With nearly a dozen Bitcoin ETFs and multiple Ethereum ETFs, the U.S. remains a central hub for crypto investment products.
By contrast, other regions saw moderate interest: Germany recorded $14.7 million in inflows, while Switzerland added $9.2 million.
Meanwhile, Canada, Brazil, and Hong Kong saw outflows of $10.1 million, $3.6 million, and $2.7 million, respectively.
CoinShares attributed the surge in U.S. BTC product inflows to growing optimism around the upcoming elections, where Republican candidate Donald Trump—who has taken a notably pro-crypto stance—leads Democratic candidate Kamala Harris by over 30% in recent polls.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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