Crypto Funds Attracted $407M Inflows Last Week: Details of CoinShares Report

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Last week, global crypto funds managed by major firms like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares experienced a shift, reporting net inflows of $407 million, according to CoinShares. This marked a recovery from the $147 million in outflows seen the previous week.

James Butterfill, Head of Research at CoinShares, attributed this shift more to the upcoming U.S. elections than to monetary policy changes. He noted, “Stronger-than-expected economic data had little effect in stopping outflows. However, after the U.S. vice presidential debate and a subsequent shift in polling toward the Republicans—seen as more supportive of digital assets—there was a clear boost in inflows and crypto prices.”

U.S.-based crypto funds led the way, contributing $406 million of the total inflows, which Butterfill believes reflects the current political landscape. In contrast, Canadian cryptocurrency investment products added a modest $4.8 million, while funds from other regions saw net outflows.

Political Impact on Crypto Investments

Donald Trump, the Republican candidate, currently holds a lead over Democrat Kamala Harris in the race for the U.S. presidential election on November 5. According to Polymarket, a decentralized predictions platform, Trump has a 54% chance of winning, compared to Harris’s 45.4%. The platform also predicts a 78% likelihood of a Republican-controlled Senate and 56% for a Democrat-led House, with a 38% chance of a full Republican sweep.

Bitcoin and Multi-Asset Products Lead Inflows

Bitcoin-focused investment products were the primary beneficiaries of these political developments, recording net inflows of $419 million last week. In contrast, short-Bitcoin funds saw $6.3 million in outflows. The U.S. spot Bitcoin ETFs contributed significantly, accounting for $348.5 million in net inflows, despite experiencing outflows during the midweek. BlackRock’s IBIT spot Bitcoin ETF led the way, adding $140.6 million, while Grayscale’s GBTC product saw $31.5 million in outflows.

At the time of writing, Bitcoin is trading at $64,900, up 2.6% in the last 24 hours and 1.7% over the past week.

Multi-Asset and Blockchain Equity Inflows

Multi-asset investment products also performed well, marking their 17th consecutive week of inflows, with $1.5 million added. Blockchain equity ETFs saw one of their strongest weeks this year, bringing in $34 million, likely driven by the recent surge in Bitcoin prices, according to Butterfill.

However, Ethereum-based products faced another challenging week, with $9.8 million in outflows. Despite this, U.S. spot Ethereum ETFs bucked the trend slightly, recording $1.9 million in net inflows.