CoinShares: US political landscape fuels $901m inflows into crypto funds

Crypto investment products experienced inflows of $901 million this month, marking the fourth-largest inflow on record, per data from CoinShares.

Crypto investment products recorded inflows of $901 million in October, marking the fourth-largest inflow month on record and accounting for 12% of total assets under management. Data from CoinShares indicates that year-to-date inflows now total $27 billion, nearly tripling the previous record of $10.5 billion set in 2021.

CoinShares head of research James Butterfill says current Bitcoin ($BTC) prices and flows are “heavily influenced by U.S. politics, with the recent surge in inflows likely linked to the Republicans poll gains.”

“The focus was almost entirely on Bitcoin, which saw inflows of $920 million.”

James Butterfill

The United States led the inflow surge, attracting $906 million, while other regions displayed a mixed performance. Germany and Switzerland saw inflows of $14.7 million and $9.2 million, respectively. In contrast, Canada, Brazil, and Hong Kong experienced modest outflows of $10.1 million, $3.6 million, and $2.7 million.

The positive sentiment surrounding Bitcoin did not extend to Ethereum (ETH), which recorded the largest outflows among digital assets last week, totaling $35 million, data shows. In contrast, Solana (SOL) garnered attention with inflows of $10.8 million. Meanwhile, blockchain equities showed signs of recovery, with inflows reaching $12.2 million last week, marking the third consecutive week of positive momentum in this sector, per CoinShares.

Meanwhile, activity among Bitcoin whales has sharply decreased, with data from IntoTheBlock revealing that net inflows for large holders dropped from approximately 38,800 $BTC on Oct. 20 to just 258 $BTC on Oct. 26, suggesting that whales are feeling jittery as the U.S. Election Day approaches.