Crypto Inflows Surge to $1.98B, Boosted by Post-Election Optimism

Cryptocurrency investment products saw a significant uptick in inflows last week, with nearly $2 billion added from November 3 to 9. This marks the fifth consecutive week of positive inflows, totaling $7.7 billion, or roughly 24% of the $31.3 billion that has flowed into the crypto market so far in 2024, according to CoinShares.

Record High Assets Under Management

The latest surge pushed global assets under management (AUM) in crypto investment products to a record-breaking $116 billion. A combination of favorable macroeconomic conditions and strong post-election momentum in the U.S. appears to be fueling this sustained investor interest.

Bitcoin ETFs Lead the Charge

Bitcoin exchange-traded funds (ETFs) continue to dominate the inflow landscape, particularly in the United States. Bitcoin products alone saw $1.8 billion in inflows last week, with Bitcoin ETFs in the U.S. reaching $9 billion in total inflows since the Federal Reserve first cut interest rates in September, ending a four-year pause.

James Butterfill, CoinShares’ research director, noted that investor optimism is likely driven by a supportive macro environment and significant shifts in the U.S. political landscape. "A combination of these factors has likely contributed to the continued strong investor sentiment," Butterfill commented.

U.S. Dominates Inflows, Europe Sees Modest Interest

Most of the inflows came from the U.S., where investors contributed $1.95 billion. In contrast, European markets saw more modest activity, with Switzerland and Germany adding $23 million and $20 million, respectively. Sweden, however, was a notable outlier, as investors there continued to pull back, with $25.7 million in outflows.

Ether ETFs See Record Inflows

Ether (ETH) ETFs also experienced a notable surge, with $157 million in inflows during the first week of November—the largest since Ether ETFs launched in July. This marks a significant shift in investor sentiment toward Ethereum-based products, which had previously seen more muted demand.

In addition to Bitcoin and Ether, a variety of altcoins also saw inflows. Solana (SOL) products saw $3.9 million in new investment, while Uniswap (UNI) and Tron (TRX) products received $1 million and $500,000, respectively. However, short-Bitcoin products faced outflows, with $2.7 million exiting those products.

Bitcoin Hits New All-Time High

The influx of capital helped push Bitcoin's price to a new all-time high, surpassing $80,000 on November 10. The momentum continued into the following days, with Bitcoin's price topping $82,379 as of November 11.

This latest wave of inflows underscores the ongoing strength of the crypto market, fueled by investor optimism, favorable macroeconomic conditions, and key political developments in the U.S. The question now is whether this momentum can be sustained as the year progresses