The cryptocurrency market saw a huge influx of investment last week, as notable factors played a major role in changing investor sentiment.
According to a recent report from CoinShares, digital asset investment products saw $407 million in revenue worldwide, marking a sharp recovery after last week’s exit. This increase in income is mainly due to an interesting trend in the United States.
Bitcoin Leads Fund Inflows As Ethereum Sees Continued Exodus
Bitcoin investment products were the main leader in last week’s fund flows, attracting $419 million in revenue, according to data from CoinShares.
It is interesting that short Bitcoin investment products, designed to benefit from the decline in the price of Bitcoin, saw an outflow of 6.3 million dollars, which shows the bullish growth around the cryptocurrency.
US spot Bitcoin exchange-traded funds (ETFs) also accounted for $348.5 million in inflows last week despite seeing short outflows from Tuesday to Thursday.
The week closed strongly with positive inflows of more than $200 million on Monday and Friday, reflecting the renewed confidence of investors in the digital assets market.
While Bitcoin-related products enjoyed huge inflows, Ethereum-based currencies continued to face challenges. A CoinShares report revealed that Ethereum investment products experienced a total outflow of $9.8 million globally, despite a small inflow of $1.9 million for the US spot Ethereum ETF.
This shows a continuation of the negative trend that Ethereum has experienced in recent weeks, indicating continued concern among investors about the near-term outlook for the asset.
Some multi-asset investment products, which include exposure to various cryptocurrencies, have maintained a positive trajectory. The brands recorded their 17th consecutive week of revenue, adding a modest $1.5 million to their total.
Additionally, blockchain equity ETFs saw a significant increase, bringing in $34 million in inflows, making it one of the biggest weekly increases of the year. Butterfill attributed this rise to Bitcoin’s recent price gains, and reinforced the connection between Bitcoin’s performance and the overall health of the crypto market.
What Driven the 407 Million Inbound Operation?
CoinShares Head of Research, James Butterfill, highlighted the impact of US political developments on the entry process.
“Investor decisions are probably more influenced by the upcoming US election than monetary policy,” explained Butterfill, pointing to growing support for digital assets from the Republican Party as a driving factor.
The CoinShared Head of Research also pointed out that this change was seen following the recent US vice presidential debate and polling data that showed increased support for Republicans, which led to a “rapid increase” in incoming prices and cryptocurrency prices.
In terms of regional fund flows, surprisingly, US-based funds dominate the income, contributing $406 million to the total income of $407 million recorded last week.
Outside of the US, the only other significant contributor to positive inflows came from Canadian crypto funds, which saw a total inflow of $4.8 million. In contrast, funds based in other regions recorded smaller outflows.
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