Last week, digital asset investment products saw $2.2 billion in inflows, reflecting a broader market uptrend driven by Donald Trump’s recent victory at the just-concluded US presidential election.
In the first half of the week, inflows peaked at $3 billion, lifting total assets under management (AUM) to an all-time high of $138 billion. However, Bitcoin’s record price performance during the period prompted an outflow of around $866 million, resulting in a net inflow of $2.2 billion.
According to CoinShares, this inflow pushed the totals since the September interest rate cut to $11.7 billion, bringing the year-to-date total to $33.5 billion.
James Butterfill, Head of Research at CoinShares, explained that:
“This recent surge in activity appears to be driven by a combination of looser monetary policy and the Republican party’s clean sweep in the recent US elections.”
US-Bitcoin ETFs continue to dominate
Bitcoin’s dominance remained strong, with $1.48 billion in inflows. The substantial flows can be linked to the impressive performance of the US-based spot exchange-traded fund (ETF) products, which continue to attract significant attention from retail and institutional traders.
Flows by Asset Management Firms (Source: CoinShares)
According to CoinShares data, BlackRock’s IBIT and Fidelity’s FBTC saw inflows of $2.1 billion and $4 million, respectively. On the other hand, outflows of $153 million from the Ark 21 Shares fund outstripped those of Grayscale, which stood at $108 million for the week.
Meanwhile, Bitcoin’s record-breaking price performance above the $90,000 mark has attracted bearish traders, who invested $49 million in short Bitcoin products.
Moreover, the bullish market sentiment appeared to influence interest in Ethereum, which also attracted significant inflows of $646 million (equivalent to 5% of its AUM). Butterfill linked this inflow to election results and a proposed Beam Chain network upgrade.
Crypto Asset Flows. (Source: CoinShares)
Other assets, including Solana, XRP, and Cardano, saw more modest inflows of $24 million, $4.3 million, and $3.4 million, respectively.
