Cryptocurrency investment products saw a sharp reversal last week, with Bitcoin leading the surge. (Photo by Michael M. Santiago/Getty Images)
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Key Takeaways
Crypto investment products recorded a net inflow of $407 million.
The strong inflows were largely credited to the growing optimism surrounding Republican support.
Republican Presidential candidate Donald Trump edged Kamala to take the lead in polls.
As Republicans gain momentum ahead of the U.S. elections, investors appear to be pouring money into digital assets.
The recent shift in popularity polls has sparked a dramatic change in investor sentiment, driving a staggering $407 million into digital asset investment products last week.
The influx of capital, reported by CoinShares, marks a significant reversal from previous weeks.
Bitcoin Leads Crypto Investment Flow
Cryptocurrency investment products saw a sharp reversal last week, with Bitcoin leading the surge.
Despite Ethereum’s struggles, blockchain equity ETFs attracted $34 million, one of the year’s largest weekly inflows. The persistent weakness in Ether investment products stands in sharp relief to their Bitcoin counterparts, which have recovered from a month-long slump.
A broader look at the crypto landscape reveals that all other digital asset investment products posted net inflows last week, with one notable exception: Ethereum.
Most ETH exchange-traded funds (ETFs) have struggled to build momentum since their initial approval, with demand slipping significantly in recent weeks.
Investment product flow by asset. Source: Coinshares.
One bright spot in the crypto universe was blockchain equity ETFs, which attracted $34 million in inflows—one of the largest weekly inflows of the year.
Republican Frenzy Drives Crypto Investment
According to Coinshares data, stellar economic data failed to stem the tide of outflows in crypto investment products last week, contrary to expectations.
Instead, a dramatic shift in polling dynamics has taken center stage, driving a surge in investor inflows.
As Republican presidential candidate Donald Trump’s popularity has gained traction on multiple betting platforms, his pro-crypto stance and lofty promises have resonated with investors.
In contrast, Democratic presidential candidate Kamala Harris’s perceived anti-crypto stance, coupled with the Biden administration’s conservative approach to digital assets, has failed to inspire confidence.
A pivotal moment for the polls came when Elon Musk’s endorsement of Trump propelled him ahead of Harris in the polls, a lead that has since been maintained with the election mere weeks away.
Presidential race odds. Source: Polymarket.
According to Polymarket data, Trump’s odds of winning have surged, while the likelihood of a Republican sweep has more than doubled that of the Democrats.
Democrats vs. Republicans odds. Source: Polymarket.
With Trump’s star on the rise and Republicans gaining ground, sentiment has shifted decidedly in favor of crypto assets.
Bitcoin and other digital investment products have responded in kind, posting significant inflows as investors bet on a Trump-led administration’s crypto-friendly agenda.
Bitcoin Climbs Above $64,000
Following a strong September, which ranked among the most profitable months for traders in a decade, crypto enthusiasts were primed for a fresh bullish wave in October, a historically favorable month for the asset class.
Although rising political tensions in the Middle East kept markets under bearish pressure for the first two weeks, the tide appears to be turning, with Bitcoin recouping losses and surging above $64,000, nearing its monthly high of about $66,000.
With less than a month to go before the U.S. presidential election, crypto markets are eyeing a potential resurgence of bullish momentum.
This could spark the second leg of the bull run, building on the momentum established after the Bitcoin halving event. The stage is set for a potentially decisive period for digital assets, with the election outcome likely to shape market sentiment.
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.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
