The uptick in funds digital assets attracted in the past week suggests a shift in investor focus from traditional monetary policy to the upcoming U.S. elections, according to CoinShares’ head of research, James Butterfill.
In a blog post on Monday, October 14, Butterfill revealed that the data shows an increasing sense of optimism surrounding political developments, especially following the recent vice presidential debate and polling trends that seem to favour Republicans, who are generally viewed as more cryptocurrency-friendly.
According to the data published by CoinShares, $407 million flowed into crypto ETFs last week. Bitcoin ETFs were the primary beneficiary, attracting the largest inflows at $419 million. (These funds recorded outflows of $6.3 million.) In contrast, Ethereum continued to see outflows totalling $9.8 million.
Of the total inflows, $406 million came from the U.S., with Canada contributing a modest $4.8 million. Multi-asset investment products continued their positive trend, recording inflows for the 17th consecutive week, albeit at a minor $1.5 million.
According to the report, blockchain equity exchange-traded funds saw $34 million in inflows, which the company attributed to the recent increases in Bitcoin prices.
Bitcoin is currently trading at $65,697.36, following a 5.28% increase over the last seven days. Ethereum, on the other hand, saw a 7.73% increase in the same period and is currently trading at $2,614.39.
Meanwhile, this report follows Butterfill’s earlier observation in September that the substantial outflows from digital asset investment products were due to decreased expectations for a U.S. interest rate cut after a strong monthly economic report. He noted that this decline reflects a broader negative trend across various providers and regions in the crypto market, with the outflows linked to more favourable U.S. economic indicators, reducing the likelihood of a 50-basis point rate cut by the Federal Reserve.
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