CoinShares, a leading crypto asset manager, has released its latest report titled “Weekly Digital Asset Fund Flows.” a report“, which highlights the noticeable rise in investment flows after the US elections.
$116 billion USD record high inflows into cryptocurrency funds
The report revealed that digital asset investment products attracted inflows worth $1.98 billion, raising global assets under management (AuM) to a record high of $116 billion. This represents the fifth consecutive week of inflows, bringing the year-to-date figures to $31.3 billion.
The increase in inflows was primarily concentrated in the United States, which represented $1.95 billion of the total, driven by favorable macroeconomic conditions and political shifts, specifically the victory of Donald Trump as the 47th President of the United States.
Europe also saw moderate inflows, with Switzerland and Germany recording $23 million and $20 million, respectively. It is worth noting that Bitcoin led this campaign with inflows worth $1.8 billion, supported by factors such as the US Federal Reserve’s decision to cut interest rates earlier this cycle.
James Butterville, head of research at CoinShares, particularly attributed the strong investor sentiment to macroeconomic support and significant changes in the US political landscape. Butterville wrote in the report:
The combination of a supportive macro environment and seismic shifts in the US political system is the likely reason for such supportive investor sentiment.
Ethereum and Altcoins are seeing renewed investor interest
The report also highlighted a notable improvement in Ethereum sentiment. The leading altcoin saw inflows totaling $157 million, representing its largest weekly inflow since the launch of Ethereum-based exchange-traded funds (ETFs) in July 2024.
This reversal in the fortunes of Ethereum, which had been witnessing a lackluster performance, signals renewed investor confidence in the asset’s prospects.
Altcoins are not excluded from the flow. Solana attracted inflows of $3.9 million, while Uniswap and Tron received $1 million and $500,000, respectively. Blockchain stocks also saw significant interest, with total inflows reaching $61 million.
The rise in inflows across various digital assets and related stocks indicates a broad-based recovery in investor sentiment, perhaps fueled by macroeconomic tailwinds and optimism surrounding regulatory clarity in the market with Donald Trump’s victory in the 2024 US elections.
Notably, Trump’s win not only led to these reported increases in inflows, but also appears to have sparked a major bull run in the overall cryptocurrency market.
So far, Bitcoin and other crypto assets in the market have seen double-digit gains in the past week. In particular, over the past three days alone, Bitcoin has consistently reached all-time highs. With the asset now up more than 20% in the past seven days, the latest ATH as of today stands at $82,379.
Other crypto assets such as Ethereum, Solana, and Dogecoin have not recorded a new all-time high yet, however, they have all seen significant price spikes with DOGE last week’s performance increasing by 84%.
Featured image created with DALL-E, chart from TradingView
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