- Last week saw major crypto inflows in the US.
- CoinShares reports $901 million inflows.
- Election narratives are driving crypto investments.
The crypto sector has long been in the legal gray area, especially in the US. However, the events around the ongoing US elections are changing the narrative.
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Most recently, investment firm CoinShares reported a $901 net inflows in crypto exchange-traded funds (ETFs) in the last week. Bitcoin was the dominant force behind this move, with $920 million in net inflows.
Surging Bitcoin Inflows Amid U.S. Elections
US elections are driving a bullish narrative for crypto, especially Bitcoin. On Monday, October 28, Coinshares reported weekly inflows in the crypto ETFs of $901 million.
Bitcoin accounted for almost all the crypto inflows, with $920 million in net inflows alone. In contrast, Ethereum saw net outflows of $35 million. Solana, another popular option, saw modest inflows of $10.8 million.
The US led in terms of inflows, with $906 million flowing to the crypto markets. At the same time, Germany and Switzerland also recorded positive inflows of $14.7 million and $9.2 million, respectively. In contrast, Canada, Brazil, and Hong Kong saw modest outflows.ย
Why Traders Want Bitcoin Now
The significant inflows, especially in the US, are likely a result of the ongoing narrative around US elections. CoinShares Head of Research, James Butterfill, suggests that prices are โheavily influenced by US politics, with the recent surge in inflows likely linked to the Republicansโ poll gains.โ
Republicans traditionally favor crypto assets and lax regulation, but this doesnโt explain the entirety of the bullish case. Recent polls show a close race, with simulations giving Republican candidate Donald Trump slightly better chances than Democratic candidate Kamala Harris.
At the same time, both Trump and Harris issued statements either praising crypto or promising favorable regulations. For that reason, the optimism around Bitcoin may be a sign of growing uncertainty about a potential leadership change.
On the Flipside
- Last week, Paul Tudor Jones pointed out that, amid the coming inflation, gold and Bitcoin may be safe havens for investors.
- Decentralized betting platform Polymarket consistently puts Trumpโs odds ahead. A recent glitch even showed his odds at 99% before it quickly corrected.ย
Why This Matters
US elections play a key role in shaping the narrative for Bitcoin, as investors are looking for safe havens against potential market volatility.
Read more about Polymarketโs bets on the election:
Betting Anomaly Shoots Trumpโs Odds to 99% on Polymarket
Read more about Solanaโs recent rise:
Solana Overtakes Ethereum in Economic Value Amid Memecoin Surge
