Crypto-based investment products continued their good run after recording nearly $1 billion in revenue this week, apparently fueled by the upcoming US Presidential election. Bitcoin (BTC) led positive net flows for the third week in a row, making October the fourth largest month for the crypto investment product on record.
Bitcoin Leads Crypto Investment Product Inflows
On Monday, CoinShares published its Digital Asset Fund Flows Weekly Report, revealing that digital asset inflows reached $901 million last week. Despite representing a 59% decrease from the $2.2 billion recorded last week, crypto-based products maintain a three-week streak of positive net flows.
After this week’s performance, Year-to-date (YTD) product revenue reached the $27 billion mark, which nearly tripled the previous record of $10.5 billion, set for 2021. Additionally, this month’s revenue represents 12% of total assets under management (AUM), making it the 4th largest monthly revenue on record, at $3.36 billion month-to-date (MTD).
Weekly Crypto Asset Flows: Source: CoinShares
In the first week of October, investment products recorded a negative flow of $147 million after market performance weakened investor sentiment. However, crypto products recovered the following week with $407 million in inflows.
Last week, Bitcoin products led the performance of crypto products with $920 million in revenue. According to Farside Investors data, the Bitcoin Exchange-Traded Funds (ETFs) space saw $997.5 million in net inflows. Meanwhile, short Bitcoin positions saw outflows of $1.3 million, down significantly from the $12 million inflows recorded last week.
Next to Bitcoin, products based on Solana recorded the second largest inflow by assets, and $ 10.8 million was added last week, which seems to be fueled by positive feelings about the cryptocurrency.
However, Ethereum products moved counterflow, seeing the largest outflow of any commodity last week at $ 35 million. The performance, which appears to have been fueled by investors’ negative view of the stock, compared with $58 million in revenue recorded last week.
US Political Influence on the Performance of Crypto Products
Regionally, the US led the positive flow of products with $906 million in revenue, likely coinciding with the upcoming November election. According to CoinShares, Bitcoin’s current price action and flow are heavily influenced by US politics, with this month’s rise possibly fueled by the gains in the Republican poll.
Similarly, IntoTheBlock recently revealed that the rise in the price of Bitcoin has been linked to Donald Trump’s chance of winning the November presidential election. Trump, who is running for the Republican Party, has embraced the crypto industry during his campaign.
The secret statements of the former US President have been well received by the industry with public support and crypto donations from industry figures. In addition, the industry’s primary support for industry representatives has appeared to have contributed to the Democratic Party’s shift to a more accepting stance, with Kamala Harris’ campaign touting the industry in various statements.
Several analysts have predicted a huge rise in the price of Bitcoin in the event of a Trump Victory. Meanwhile, experts have shared mixed opinions about the performance of the crypto market if the Democratic candidate wins the election, while others suggest that it will not be as “bearish” as investors expect.
After the presidential debate, Donald Trump fell behind Harris in the prediction markets but recovered earlier this month, increasing his chances significantly in the past few weeks. According to Polymarket, Trump’s probability of winning is 66%.
Bitcoin (BTC) is trading at $68,930 in the weekly chart. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, Chart from TradingView.com
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