Digital Asset Inflows Skyrocket to $407M Amidst U.S. Election-Driven Investor Sentiment
Bitcoin
ETFs
Inflows
Bitcoin emerged as the primary beneficiary, attracting a whopping $419 million in inflows.
As of October 14, 2024, at 07:12 EDT, digital asset investment products experienced a significant surge in inflows, reaching a total of $407 million. This surge can largely be attributed to investor sentiment surrounding the upcoming U.S. elections.
According to a report by CoinShares on Monday, it is political developments, rather than monetary policy outlooks, that are influencing investor decisions. Notably, even stronger-than-expected economic data failed to reverse the outflows. However, a recent shift in polling towards Republicans, who are perceived as more favorable to digital assets, sparked a rapid increase in both inflows and asset prices.
In terms of inflows, the U.S. accounted for the bulk of the investments, with a staggering $406 million, while Canada followed with $4.8 million. Bitcoin emerged as the primary beneficiary, attracting an impressive $419 million in inflows. Meanwhile, short-Bitcoin products experienced outflows of $6.3 million, reflecting investors’ optimism about Bitcoin’s future.
Multi-asset investment products continued their streak with a 17th consecutive week of inflows, though a bit modest at $1.5 million. On the other hand, Ethereum saw continued outflows, totaling $9.8 million.
In addition, blockchain equity ETFs recorded one of their largest weekly inflows of the year, drawing $34 million, likely in response to rising Bitcoin prices.
On October 11, Bitcoin ETFs saw significant inflows, with a daily total net inflow of $253.54 million, pushing the cumulative total to $18.81 billion. The total value traded on that day reached $2.06 billion, while the total net assets of Bitcoin ETFs amounted to $58.66 billion, representing 4.71% of Bitcoin’s market cap.
Among the top performers, Fidelity’s FBTC ETF saw the largest one-day net inflow of $117.10 million, with net assets totaling $11.35 billion. Meanwhile, Grayscale’s GBTC experienced a notable outflow of $22.09 million.
In contrast, Ethereum ETFs showed a decline. The daily total net outflow was $97.11K, and the cumulative net outflow reached $558.88 million. Fidelity’s FETH ETF was the highlight of the day, attracting $8.61 million in net inflows and pushing its cumulative total to $454.50 million. On the other hand, Grayscale’s ETHE saw a one-day outflow of $8.71 million, bringing its cumulative net outflow to $2.98 billion.
A recent survey commissioned by financial services giant Charles Schwab revealed that nearly half of U.S. investors plan to invest in crypto ETFs. The survey found that 45% of respondents plan to invest in crypto through ETFs over the next year, which is an increase from 38% the previous year. This growing interest in crypto has now surpassed demand for bonds and alternative assets, with only U.S. equities ranking higher, as 55% of participants indicated plans to invest in stocks.
Millennial ETF investors showed even stronger enthusiasm for crypto, with 62% intending to allocate funds to the sector, compared to 48% for U.S. stocks, 47% for bonds, and 46% for real assets like commodities. In contrast, baby boomer ETF investors demonstrated significantly less interest in digital assets, with just 15% planning to invest in them.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, described the high ranking of crypto in investment plans as “pretty stunning.”
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