Digital Asset Inflows Surge to $407M Amid U.S. Election-Driven Investor Sentiment

Digital asset investment products experienced a significant surge in inflows, reaching $407 million, largely driven by investor sentiment surrounding the upcoming U.S. elections.

According to a Monday report by CoinShares, political developments, rather than monetary policy outlooks, are influencing investor decisions.

Notably, stronger-than-expected economic data failed to reverse outflows, while a recent shift in polling toward Republicans, perceived as more favorable to digital assets, sparked a rapid increase in both inflows and asset prices.

The U.S. Leads in Terms of Inflows

The U.S. accounted for the bulk of the inflows, with $406 million, while Canada followed with $4.8 million.

Bitcoin emerged as the primary beneficiary, attracting $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 modest at $1.5 million.

Ethereum, on the other hand, saw continued outflows, totaling $9.8 million.

Additionally, blockchain equity ETFs recorded one of their largest weekly inflows of the year, drawing $34 million, likely in response to rising Bitcoin prices.

On Friday, 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 the 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 hit $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.

Nearly Half of U.S. Investors Plan to Invest in Crypto ETFs

A recent survey commissioned by financial services giant Charles Schwab revealed that U.S. investors are increasingly interested in ETFs holding cryptocurrencies.

The survey found that 45% of respondents plan to invest in crypto through ETFs over the next year, an increase from 38% the previous year.

The 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.

“Pretty stunning,” Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said about crypto’s high ranking in investment plans in the survey.

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