Crypto Funds See $407M Inflows Amid U.S. Political Shifts

• $407M inflows driven by U.S. politics, reversing previous outflows.
• Bitcoin leads with $419M inflows; short-Bitcoin products face outflows.

Global crypto funds managed by asset giants such as BlackRock, Bitwise, Fidelity, Grayscale, and ProShares experienced net inflows of $407 million last week, according to CoinShares. This marked a sharp reversal from $147 million in outflows the previous week. The inflows were primarily driven by U.S.-based funds, which contributed $406 million to the total, while Canada recorded a modest inflow of $4.8 million. Other regions mostly saw net outflows.

According to James Butterfill, CoinShares’ Head of Research, recent investment trends have been influenced more by the U.S. political climate than by monetary policy. “Stronger-than-expected economic data had little effect on stemming outflows,” Butterfill noted, but political events, such as the U.S. vice presidential debate and polling shifts towards the Republicans—perceived as more supportive of digital assets—resulted in a boost in inflows and prices.

17th Consecutive Week of Inflows

Bitcoin-based investment products were the primary beneficiaries of these political shifts, seeing inflows of $419 million last week. On the other hand, short-Bitcoin products recorded $6.3 million in outflows. Despite daily outflows from Tuesday to Thursday, U.S. spot Bitcoin exchange-traded funds (ETFs) managed to post $348.5 million in net inflows, with BlackRock’s IBIT ETF leading the charge, adding $140.6 million.

Meanwhile, multi-asset investment products marked their 17th consecutive week of inflows, though with a modest $1.5 million. Blockchain equity ETFs also saw significant gains, bringing in $34 million, one of the highest weekly inflows this year, driven by recent Bitcoin price surges.

Conversely, Ethereum-based products continued their outflow trend, losing $9.8 million globally, despite $1.9 million in inflows to U.S.-based Ethereum ETFs. Bitcoin currently trades at $64,379, reflecting a 2.6% rise over the last 24 hours.