Posted: November 19, 2024

• Crypto investment inflows hit $2.19 billion, and YTD net inflows soared to $33.5 billion.
• Bitcoin dominance strengthened with $1.48 billion inflows amid a record-high $93,477 price.

The recent U.S. election has significantly influenced the cryptocurrency market, sparking a surge in investor activity.

Global crypto investment products witnessed an impressive inflow of $2.19 billion last week, pushing year-to-date (YTD) net inflows to an unprecedented $33.5 billion, as highlighted in CoinShares’ latest report.

This momentum aligned with Bitcoin [BTC]’s meteoric rise to a record-breaking $93,477, propelling the total assets under management (AUM) for crypto funds to an estimated $138 billion.

Remarking on the same, James Butterfill, Head of Research at CoinShares, noted, 

“This recent surge in activity appears to be driven by a combination of looser monetary policy and the Republican party’s clean sweep in the recent US elections.”

Crypto inflows surge

The report revealed a dynamic week for crypto investment products. Inflows initially reached $3 billion, but Bitcoin’s new all-time high spurred significant profit-taking and outflows.

Despite this, Bitcoin-focused investment products attracted $1.48 billion, while Ethereum [ETH] products garnered $646 million in inflows.

In contrast, products tied to multiple cryptocurrencies faced $19.4 million in outflows, and Binance’s BNB products saw $400,000 in outflows.

That being said, since the September interest rate cuts, total inflows have hit $11.7 billion.

The report attributes this surge to the effects of relaxed monetary policies and the Republican Party’s decisive victory in the recent U.S. elections, signaling a notable shift in market sentiment.

Bitcoin ETF dominance prevails

Bitcoin maintained its market dominance as expected, drawing $1.48 billion in inflows, largely due to the strong performance of U.S.-based spot ETFs.

CoinShares data highlighted contributions from BlackRock’s IBIT with $2.1 billion and Fidelity’s FBTC with $4 million in inflows. Meanwhile, funds like Ark 21Shares and Grayscale experienced outflows of $153 million and $108 million, respectively.

Bitcoin’s rally beyond $90,000 also spurred bearish sentiment, prompting $49 million in investments in short Bitcoin products.

Ethereum followed closely, securing $646 million in inflows, attributed to election outcomes and anticipation around the Beam Chain upgrade.

Other altcoins like Solana [SOL], Ripple [XRP], and Cardano [ADA] witnessed steady interest, with inflows reaching $24 million, $4.3 million, and $3.4 million, respectively, signaling a continued diversification of investor portfolios.

In conclusion, Buterfill put it best when he said, 

“The next four years may witness an unprecedented level of institutional support, increased government interest, and broader public adoption, setting the stage for Bitcoin to further solidify its place in the global financial landscape.”