US Elections Trigger $2.2 Billion Influx into Crypto Funds

Between November 10 and 16, cryptocurrency investment funds received $2.19 billion, up from $1.98 billion the previous week, according to CoinShares. 

In the first half of the week, inflows reached $3 billion. Subsequent profit-taking after bitcoin reached its ATH led to an outflow of $866 million, experts explained.

Experts linked the continued positive trend to a more accommodative monetary policy and the Republican Party’s victory in the US elections.

Year-to-date inflows increased to a new record of $33.5 billion.

Assets under management (AUM) also reached a historic high of $138 billion. By the end of the week, the figure had fallen to $135.9 billion.

Bitcoin instruments received $1.48 billion, down from $1.8 billion the previous week.

Clients directed $48.5 million into structures that allow shorting digital gold, after withdrawing $2.7 million in the previous reporting period.

The positive trend in Ethereum funds significantly strengthened, with inflows jumping from $157 million the previous week to $646 million (5% of AUM). Analysts cited statements by developer Justin Drake regarding network consensus level upgrades as a growth factor.

Among other altcoins, products based on Solana ($23.9 million), XRP ($4.3 million), and Cardano ($3.4 million) stood out.

Earlier, Bernstein urged investors to add crypto assets to their portfolios “as soon as possible.” They recommended acquiring a basket of digital assets, including BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE, and LINK.

Previously, Glassnode noted that bitcoin had not reached levels for profit-taking by hodlers.