Bitcoin and Solana Lead as Crypto Investment Products Record $901M Inflow

Last week, inflows into digital investment products reached a jaw-dropping $901 million, with Bitcoin (BTC) and Solana (SOL) ranking as the top gainers. 

A recent report from CoinShares suggests an increased hype in digital assets, as reflected in the inflows into crypto investment products. 

According to data, these products saw a staggering inflow of $901 million last week, pushing the year-to-date (YTD) inflows to a whopping $27 billion.

The inflows recorded so far this year are nearly three times the figure recorded throughout 2021. Also, the month-to-date (MTD) investment is $3.32 billion, making October 2024 the fourth highest in terms of inflows.

Bitcoin and Solana Record Most Inflows 

Notably, investment products tied to Bitcoin saw the most inflow over the past week, totaling $920 million. Following last week’s inflow, Bitcoin’s year-to-date flows stand at $25.46 billion, with a jaw-dropping $78.99 billion in assets under management (AUM) for its investment vehicles. 

Solana investment products saw the second-highest inflows last week at $10.8 million. This brought the asset’s MTD and YTD flows to $17.9 million and $69.2 million, respectively. At press time, the assets under management across Solana investment products stands at $1.47 billion. 

Other crypto-related investment products that witnessed inflows last week include ‘others,’ Multi-asset, Litecoin, and XRP. These digital investment products saw inflows of $2.2 million, $2.1 million, $1.8 million, and $0.2 million, respectively. 

Conversely, Ethereum investment products saw record outflows of $34.7 million. As a result, the second-biggest cryptocurrency registered an MTD outflow of $12.2 million. However, this did not drastically affect Ethereum’s YTD record, as the asset has witnessed a total of $748.4 million throughout this year. 

Short Bitcoin and Cardano registered slight outflows over the past week, totaling $1.3 million and $0.1 million, respectively. 

Flows By Country 

As expected, the United States took the lead in terms of regional flows. The country registered $906 million worth of inflows, followed by Germany, which attracted $14.7 million worth of investment. Switzerland ranked third with inflows of $9.2 million. 

However, Canada, Brazil, and Hong Kong witnessed modest outflows last week, totaling $10.1 million, $3.6 million, and $2.7 million, respectively. 

Potential Reason Behind Surging Inflow into Digital Investment Products 

According to CoinShares, the major factor behind the surging investments into crypto asset-related investment products is likely due to political developments in the United States. 

Recent polls suggest that Donald Trump has a better chance of defeating U.S. Vice President Kamala Harris in the presidential election on November 5. 

In particular, data from decentralized prediction platform Polymarket shows that Trump, who has continuously voiced his support for crypto, has 66.1% odds of winning the election. Conversely, his opponent, Kamala Harris, currently part of an administration known for its aggressive stance toward crypto, has 33.9% odds. 

With the election slated to commence in a week and Trump leading most polls, investments into crypto products are expected to surge.