CoinShares, a leading crypto asset management company, released its latest “Digital Asset Fund Flows Weekly Report,” highlighting a significant increase in investment flows following the US election.
116 Billion Record High Crypto Fund Flows
The report revealed that digital asset investment products attracted $1.98 billion in revenue, bringing global assets under management (AuM) to a record high of $116 billion. This marks the fifth consecutive week of inflows, bringing the total for the year to $31.3 billion.
The increase in immigration is concentrated in the United States, which cost $ 1.95 billion in total, driven by good economic conditions and political change, especially the victory of Donald Trump who appears as the 47th president of the United States.
Europe also saw moderate inflows, with Switzerland and Germany recording $23 million and $20 million, respectively. Notably, Bitcoin earned $1.8 billion, supported by factors such as the US Federal Reserve’s decision to cut interest rates at the beginning of this cycle.
James Butterfill, Head of Research at CoinShares, mainly said that strong investor sentiment is based on macroeconomic support and key changes in the US political environment. Butterfill wrote in the report:
The combination of a large supportive environment and a seismic shift in the US political system has been a likely reason for supportive investor sentiment.
Ethereum and Altcoins See Renewed Investor Interest
The report also highlighted a significant improvement in Ethereum sentiment. The leading altcoin saw a total inflow of $157 million, marking its largest weekly inflow since the launch of Ethereum exchange-traded funds (ETFs) in July 2024.
This reversal in the fortunes of Ethereum, which has been experiencing poor performance, shows that investors have renewed confidence in the asset’s prospects.
Altcoins were not left out. Solana attracted $3.9 million in revenue, while Uniswap and Tron received $1 million and $500,000 respectively. Blockchain shares also saw a lot of interest, with revenues reaching $61 million.
The increase in income in various digital assets and related funds suggests a fundamental recovery in the basis of investor sentiment, which may be stimulated by macroeconomic conditions and the optimism associated with the clarification of the rules in the market as Donald Trump emerges as the winner of the US election of 2024.
Notably, Trump’s victory not only led to this reported surge in inflows but also appears to have started a bull run in the crypto market as a whole.
So far, Bitcoin and other crypto assets in the market have seen double-digit gains in the past week. In particular, in the last three days alone, Bitcoin has been hitting highs. As the stock is now up more than 20% in the last 7 days, its latest ATH as of today is $82,379.
Other top crypto assets such as Ethereum, Solana, and Dogecoin have yet to record new highs, however, they all saw significant price increases as last week’s performance of DOGE increased by 84%.
The featured image was created with DALL-E, a Chart from TradingView
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