Cryptocurrency investment products saw a significant boost last week, with inflows reaching $407 million from October 5 to 11. According to a recent report, Bitcoin led the pack with $419 million in inflows.
The uptick in investments followed a minor sell-off of $127 million the previous week, which was triggered by strong U.S. economic data. However, experts believe that the latest inflows were driven by political factors, particularly the upcoming U.S. elections, rather than changes in monetary policy.
James Butterfill, head of research, highlighted that the upcoming elections—where polling suggests a potential shift in control of the U.S. Senate to the Republican Party—played a major role in the market’s recent movement. Butterfill pointed out that Republicans are generally viewed as more supportive of digital assets, which contributed to the increased interest in crypto products.
Bitcoin was the biggest winner from this political shift, securing the largest inflows, while short-Bitcoin products faced outflows of $6.3 million. Additionally, blockchain equity exchange–traded funds (ETFs) saw a notable increase, with inflows of $34 million, making it one of the strongest weeks of 2024 for these funds.
Summary Review: Cryptocurrency investment products experienced $407 million in inflows during the second week of October, driven by political factors related to the upcoming U.S. elections. Bitcoin benefited the most, seeing $419 million in inflows, while short-Bitcoin products faced outflows. The report suggests that expectations of a political shift toward the Republican Party, known for its support of digital assets, played a major role in boosting the crypto market.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
