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$27 billion crypto inflows in 2024, $901 million last week amid US political backdrop

$27 billion crypto inflows in 2024, $901 million last week amid US political backdrop
© Copyright Image: CryptoSlate

Crypto investment products are experiencing one of their best months on record, with inflows hitting $901 million in the last week alone, according to CoinShares latest report.

This months inflows now represent roughly 12% of the sectors total assets under management, positioning it as the fourth-highest month for inflows on record. Similarly, year-to-date inflows have reached $27 billion, almost tripling the record from 2021, which saw inflows of $10.5 billion.

US politics drive demand

Bitcoin attracted the majority of inflows, totaling $920 million. This was driven by the strong demand for BlackRocks IBIT-led spot BTC ETFs, which saw a cumulative flow of $998 million last week.

In contrast, short-Bitcoin products saw a slight outflow of $1.3 million.

James Butterfill, CoinShares Head of Research, observed that US politics are shaping Bitcoin flows and prices, with rising inflows likely tied to Republicans improved polling numbers. He noted:

We believe that current Bitcoin prices and flows are heavily influenced by US politics, with the recent surge in inflows likely linked to the Republicans poll gains.

With the US election approaching, both major candidatesformer President Donald Trump and Vice President Kamala Harrisare intensifying their outreach to crypto supporters by promoting pro-crypto policies to appeal to this growing voter base. A recent survey estimated that around 26 million voters see crypto as a voting factor, potentially giving it a pivotal role in the election outcome.

Data from the decentralized betting platform Polymarket show that crypto investors lean toward Trump, who currently holds a 65% chance of winning, while Harriss odds have dropped to 35%.

Ethereum outflows

While Bitcoin inflows remain robust, Ethereum experienced outflows totaling $35 million last week, the largest for any digital asset.

This aligns with slower performance in Ethereum-based ETFs and reflects ETHs ongoing price struggles relative to BTCit is down 55% from its recent peak.

Solana, however, gained traction with the second-highest inflow at $10.8 million, followed by Litecoin with $1.8 million.

Meanwhile, The broader blockchain equities market also showed a positive trend, with inflows recorded for the third consecutive week, totaling $12.2 million last week.

The post $27 billion crypto inflows in 2024, $901 million last week amid US political backdrop appeared first on CryptoSlate.

Read more: https://cryptoslate.com/27-billion-crypto-inflows-in-2024-901-million-last-week-amid-us-political-backdrop/

Text source: CryptoSlate

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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