Record Flow of crypto asset funds: The Impact of the US Elections Continues

Cryptocurrency assets attracted over $2 billion in investments last week, bringing the total investment inflows this year to a record high of $33.5 billion. Assets under management (AuM) reached a new peak of $138 billion at the start of the week.

The reduction in interest rates last September to combat inflationary pressures resulted in a total investment flow of $11.7 billion since the beginning of the year. Despite a $3 billion influx in the middle of the week, a subsequent outflow of $866 million was observed in the second half of the week as Bitcoin prices reached historical highs. According to CoinShares analysts, this volatility is attributed to a trend supported by loosened monetary policies and a Republican victory in the U.S. elections.

Bitcoin and Ethereum funds saw activity, with Bitcoin funds experiencing inflows of $1.48 billion last week. However, as prices hit record levels, investors shifted towards $49 million in short Bitcoin products, indicating a tendency to take profits at high price levels.

Ethereum funds reversed their negative trajectory with inflows of $646 million. This increase is attributed to the proposal of Justin Drake's Beam Chain network upgrade and the impact of the U.S. elections. Additionally, Solana-based funds raised $24 million. Multi-asset investment funds, on the other hand, showed a negative trend with nearly $20 million in outflows, while Binance-based investment funds saw partial outflows of around $400,000, not participating in market enthusiasm.

In global markets, cryptocurrency investment flows reached $2.2 billion in the U.S., with inflows of $27 million, $18 million, and $13 million recorded in Hong Kong, Australia, and Canada, respectively. Conversely, in Sweden and Germany, investors took profits, resulting in outflows of $58 million and $6.8 million, respectively.

These figures reflect the interest and strategies of investors in different regions towards cryptocurrency assets. According to CoinShares data, particularly the inflows in the U.S. are viewed as a move indicating increased confidence and interest in the crypto sector within global markets.