US Political Shifts Spark $901M Inflows into Crypto Funds

In October, crypto investment products saw a remarkable $901 million in inflows, the fourth-largest on record, representing 12% of total assets under management, according to CoinShares. This influx brings the year-to-date total to $27 billion, nearly tripling the 2021 record of $10.5 billion.

James Butterfill, head of research at CoinShares, notes that U.S. political dynamics, particularly rising Republican polling gains, have likely fueled the recent surge, with Bitcoin (BTC) drawing significant attention. “The focus was almost entirely on Bitcoin, which saw inflows of $920 million,” Butterfill emphasized.

The United States accounted for $906 million of the inflows, leading global demand, while Germany and Switzerland followed with $14.7 million and $9.2 million, respectively. However, Canada, Brazil, and Hong Kong each reported modest outflows, totaling $10.1 million, $3.6 million, and $2.7 million.

Despite Bitcoin’s robust performance, Ethereum (ETH) faced outflows totaling $35 million, while Solana (SOL) gained traction, drawing in $10.8 million. Blockchain equities also showed positive momentum, marking their third week of consecutive inflows, with $12.2 million last week.

In contrast, activity among major Bitcoin holders has slowed. Data from IntoTheBlock shows net inflows for Bitcoin whales dropped from 38,800 BTC on October 20 to just 258 BTC by October 26, suggesting that high-stakes investors may be taking a cautious stance as U.S. Election Day nears.

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