Cryptocurrency funds record inflows of US$407 million
Cryptocurrency investment products recorded inflows of US$407 million last week, as reported by CoinShares in its weekly report released this Monday (14).
According to the company, these entries are possibly related to investor decisions being more influenced by the upcoming United States elections than by the outlook for monetary policy.
“This trend is evident in the fact that stronger than expected economic data had little impact on curbing outflows. Meanwhile, the recent US vice-presidential debate and a subsequent shift in polls towards Republicans, perceived as more favorable to digital assets, led to an immediate increase in inflows and prices,” CoinShares said.
Cryptocurrency funds begin receiving investments again
As predicted, likely due to the political nature of recent inflows, the US accounted for US$406 million of total investments. The only other country with notable investments in cryptocurrency funds was Canada, which saw inflows of $4.8 million.
Meanwhile, Germany and Australia invested $800,000 and $2.0 million, respectively, in crypto funds. Brazil, in turn, recorded outflows of US$1.4 million, as did Hong Kong, which withdrew US$800,000 from investment products in digital assets. Sweden, on the other hand, made a slightly more aggressive move by withdrawing almost US$4 million from these products.
Bitcoin recorded inflows totaling $419 million, making it the main beneficiary of recent political changes. In contrast, Bitcoin short investment products saw outflows of $6.3 million.
Multi-asset investment products recorded their 17th week of inflows, with US$1.5 million in investments. On the other hand, Ethereum resumed its trend of outflows, which totaled US$9.8 million last week.
The cryptocurrencies Solana (SOL), Litecoin (LTC) and XRP recorded modest inflows of US$600,000, US$100,000 and US$1.1 million, respectively.
Finally, blockchain-focused equity ETFs saw some of the biggest weekly inflows this year, totaling $34 million. According to CoinShares, this is likely related to recent Bitcoin price increases.
The price of Bitcoin is up 3.3% in the last 24 hours and 2.5% in the last week, according to data from CoinGecko. At the time of writing this article, BTC is priced at US$64,777, close to the psychological level of US$65,000.