Digital asset investments have reached a major milestone, according to the latest CoinShares report. As per the data, October inflows totaled $901 million.
This surge has pushed year-to-date inflows to $27 billion, nearly tripling the previous record set in 2021.
United States contributed to $906 million in inflows
The United States has emerged dominant, contributing $906 million in inflows. This contrasts sharply with other regions, where the numbers are more mixed.
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Germany and Switzerland showed modest gains with inflows of $14.7 million and $9.2 million, respectively.
However, Canada ($10.1 million), Brazil ($3.6 million), and Hong Kong ($2.7 million) experienced minor outflows.
The substantial inflows this month represent approximately 12% of total assets under management. This marks October as the fourth-largest month for inflows on record.
This surge follows an even more impressive previous week, which saw $2.2 billion in total crypto inflows.
Bitcoin accounted for the majority of inflows
Bitcoin has been the primary beneficiary of this investment surge, attracting $920 million in inflows.
CoinShares attributes this strong performance to U.S. political factors. They particularly noted the correlation between inflows and Republican gains in polling.
Interestingly, this surge wasn’t accompanied by the usual corresponding increase in short-Bitcoin positions, which instead saw minor outflows of $1.3 million.
Even though Bitcoin dominated inflows, other cryptocurrencies and related investments showed mixed results. Ethereum experienced major outflows totaling $35 million.
However, Solana demonstrated strength with the second-largest inflows at $10.8 million.
Blockchain equities have shown signs of recovery by marking their third consecutive week of positive flows with $12.2 million in new investments.
Crypto market braces for major changes
The latest data suggests a changing landscape in cryptocurrency investment. Particularly, the U.S. political dynamics are playing an increasingly important role in market sentiment.
These developments come at a crucial time for the cryptocurrency market, as changing political and economic conditions affect the market.
The strong inflows, particularly in the U.S. market, suggest growing institutional confidence in cryptocurrencies as a legitimate asset class.
This is despite ongoing regulatory uncertainties and the SEC’s ongoing crypto scrutiny.
The US election is set to happen on November 5, 2024. The outcome of the election will play a major role in what’s next for crypto in the United States.
Donald Trump in particular has been quite vocal about his crypto stance. Even though he was a skeptic a few years back, Trump has transitioned to an avid crypto supporter.
He was even accepting cryptocurrency for his campaign donations. The entire trajectory of Bitcoin will now depend on the election results.
Bitcoin was down by over 6.7% since its all time high of $73,750, which was touched on March 14, 2024.
