Headline: Crypto Asset Fund Inflows Surge Amid U.S. Election Optimism

Inflows into crypto asset funds have reached $2.2 billion, the highest level since July.

CoinShares analysts believe this increase is supported by the expectation of a Republican victory in the upcoming U.S. elections. This expectation, with crypto assets often seen as more supportive, has created positive momentum in the market. While demand for Bitcoin continues to rise, the streak in multi-asset funds has been broken. Bitcoin remains the asset attracting the most funds for the week with $2.13 billion in inflows. The rise in Bitcoin price also triggered $2 million in inflows into the fund aimed at short positions. This was the largest increase seen since March.

Ethereum attracted investor interest with $57.5 million in inflows, while altcoins like Solana, Litecoin, and XRP were also on investors' radars. Among altcoin funds, Solana obtained $2.4 million, Litecoin $1.7 million, and XRP $0.7 million in inflows. The 17-week inflow streak in multi-asset funds ended last week with $5.2 million in outflows from these funds. Other altcoin funds that saw outflows were Cardano with $1.5 million and Binance with $0.8 million.

Thus, a 30% increase in trading volumes and rising prices contributed to companies’ total assets under management (AuM) approaching the $100 billion mark. On a regional basis, profit-taking outside the U.S. stood out.

The U.S. took the largest share with $2.3 billion in inflows, while small-scale outflows were observed in countries such as Canada, Sweden, and Switzerland. These outflows were reported as $19.9 million, $18.2 million, and $14.9 million, respectively, believed to result from investors outside the U.S. reducing their positions to take profits.