Volume 207: Digital Asset Fund Flows Weekly Report

From CoinShares Research Blog by James Butterfill

Election Euphoria for a Republican win Prompted US$2.2bn inflows

Digital asset investment products saw inflows of US$2.2bn last week, bringing year-to-date inflows to a record breaking US$29.2bn. This, and recent price appreciation, has now pushed total assets under management (AuM) to over US$100bn for only the second time in history, matching levels seen in early June 2024 at US$102bn. Trading volumes rose by 67% week-on-week to US$19.2bn, representing 35% of total trading of bitcoin on trusted exchanges.

Regionally, the US saw US$2.2bn of inflows, while Germany also saw minor inflows of US$5.1m. We believe euphoria around the prospect of a Republican victory were the likely reason for these inflows as they were in the first few days of last week, as polls have turned, we saw minor outflows on Friday, highlighting how sensitive Bitcoin is to the US elections at present.

Bitcoin was almost the sole beneficiary, seeing US$2.2bn of inflows last week, although the recent price appreciation also prompted inflows into short-bitcoin of US$8.9m.

Ethereum saw tepid inflows totalling US$9.5m and remains in stark contrast to the bullishness seen in Bitcoin or Solana, which saw a further US$5.7m of inflows last week. A range of altcoins saw minor inflows, most notable being Polkadot (US$0.67m) and Arbitrum (US$0.2m)