Digital Asset Inflows Surge to $407M Amid U.S. Election-Driven Investor Sentiment

Digital asset investment products experienced a significant surge in inflows, reaching $407 million, largely driven by investor sentiment surrounding the upcoming U.S. elections.

According to a Monday report by CoinShares, political developments, rather than monetary policy outlooks, are influencing investor decisions.

Notably, stronger-than-expected economic data failed to reverse outflows, while a recent shift in polling toward Republicans, perceived as more favorable to digital assets, sparked a rapid increase in both inflows and asset prices.

The U.S. Leads in Terms of Inflows

The U.S. accounted for the bulk of the inflows, with $406 million, while Canada followed with $4.8 million.

Bitcoin emerged as the primary beneficiary, attracting $419 million in inflows.

Meanwhile, short-Bitcoin products experienced outflows of $6.3 million, reflecting investors’ optimism about Bitcoin’s future.

Multi-asset investment products continued their streak with a 17th consecutive week of inflows, though modest at $1.5 million.

Ethereum, on the other hand, saw continued outflows, totaling $9.8 million.

Additionally, blockchain equity ETFs recorded one of their largest weekly inflows of the year, drawing $34 million, likely in response to rising Bitcoin prices.

📊Coinshares verilerine göre, dijital varlık yatırım ürünleri geçtiğimiz hafta 407 milyon dolarlık giriş yaşadı.

•Bitcoin 419 milyon dolarlık giriş görürken, Ethereum 9,8 milyon dolarlık çıkış kaydetti.

According to Coinshares data, digital asset investment products… pic.twitter.com/dK34VXiVfU

— YOYODEX (@yoyodexnews) October 14, 2024

On Friday, October 11, Bitcoin ETFs saw significant inflows, with a daily total net inflow of $253.54 million, pushing the cumulative total to $18.81 billion.

The total value traded on the day reached $2.06 billion, while the total net assets of Bitcoin ETFs amounted to $58.66 billion, representing 4.71% of Bitcoin’s market cap.

Among the top performers, Fidelity’s FBTC ETF saw the largest one-day net inflow of $117.10 million, with net assets totaling $11.35 billion.

Meanwhile, Grayscale’s GBTC experienced a notable outflow of $22.09 million.

In contrast, Ethereum ETFs showed a decline.

The daily total net outflow was $97.11K, and the cumulative net outflow hit $558.88 million.

Fidelity’s FETH ETF was the highlight of the day, attracting $8.61 million in net inflows and pushing its cumulative total to $454.50 million.

On the other hand, Grayscale’s ETHE saw a one-day outflow of $8.71 million, bringing its cumulative net outflow to $2.98 billion.

Nearly Half of U.S. Investors Plan to Invest in Crypto ETFs

A recent survey commissioned by financial services giant Charles Schwab revealed that U.S. investors are increasingly interested in ETFs holding cryptocurrencies.

The survey found that 45% of respondents plan to invest in crypto through ETFs over the next year, an increase from 38% the previous year.

The growing interest in crypto has now surpassed demand for bonds and alternative assets, with only U.S. equities ranking higher, as 55% of participants indicated plans to invest in stocks.

Millennial ETF investors showed even stronger enthusiasm for crypto, with 62% intending to allocate funds to the sector, compared to 48% for U.S. stocks, 47% for bonds, and 46% for real assets like commodities.

In contrast, baby boomer ETF investors demonstrated significantly less interest in digital assets, with just 15% planning to invest in them.

“Pretty stunning,” Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said about crypto’s high ranking in investment plans in the survey.

New Schwab survey is out where they asked ETF investors which asset classes they plan on investing in over next year via ETFs…

#1 for Millennials? Crypto.

Crypto was #2 for all investors.

"No demand." pic.twitter.com/55sy3foCZ5

— Nate Geraci (@NateGeraci) October 10, 2024