Digital Asset Investment Products Saw The Largest Inflows Since July

Key Points:

• Digital asset investment products saw inflows of $2.2 billion last week, the largest weekly increase since July.
• Bitcoin attracted the majority of the inflows at $2.13 billion, with Ethereum gaining $58 million.

Digital assets investment products saw substantial inflows of $2.2 billion last week, the largest since July.

Read more: Digital Asset Investment Product Inflows Hit 3-Month High

Digital Asset Investment Products Surge on Spurring Political Optimism

The surge reportedly happened because of growing expectations of a Republican victory in the upcoming U.S. elections, which are generally perceived as favourable events for digital asset investment products.

The inflows have also triggered a significant increase in trading volumes, with flows reaching 30% higher. Total assets under management in the digital asset space pushed price appreciation and new investments near the US$100 billion mark.

The United States accounted for $2.3 billion of new investments. For the most part, the rest of the regions reported minor outflows, with Canada, Sweden, and Switzerland having $20 million, $18 million, and $15 million in withdrawals, respectively. This could be a telltale sign of some kind of profit-taking being extended outside of the United States.

Bitcoin and Ethereum Take the Lead

Meanwhile, Bitcoin was the largest beneficiary of the inflows, fetching $2.13 billion. In a notable development, the short-Bitcoin position, with its recent price gains, witnessed inflows totalling $12 million, the largest since March.

Ethereum also got some warmth, flowing in at $58 million. Some altcoins enjoyed good inflows: Solana was at $2.4 million, Litecoin $1.7 million, and XRP $0.7 million. Multi-asset products, however, had outflows of $5.3 million, snapping 17 consecutive weeks of inflows.