The recent surge in Bitcoin inflows, amounting to a staggering $920 million in October, has been primarily attributed to the growing Republican support in the United States. This political climate has ignited renewed interest in digital assets, particularly Bitcoin, leading to substantial investment flows.
CoinShares’ “Digital Asset Fund Flows Weekly Report” reveals that Bitcoin dominated the inflows, while short-Bitcoin products experienced minor outflows. This trend indicates a strong bullish sentiment towards Bitcoin, driven by the anticipation of favorable regulatory policies under a potential Republican-led government.
Solana emerged as the second most popular choice among investors, attracting $10.8 million in inflows. Multi-asset products also saw a recovery, drawing $2.1 million after a previous setback. Altcoins like Litecoin and XRP also recorded modest inflows, while blockchain equities continued their upward trajectory.
However, Ethereum bucked the trend, experiencing the largest outflow of $35 million, followed by Cardano with minor outflows.
Geographically, the US led the way with strong inflows of $906 million, followed by Germany and Switzerland. Australia also recorded modest inflows, while Sweden and Canada had the largest outflows.
The potential impact of Donald Trump’s presidency on digital asset regulation has fueled significant investor interest. His perceived pro-crypto stance has led to substantial bets on his November election odds, with a mystery investor adding $2 million in USDC to pro-Trump bets on Polymarket.
This confluence of factors, including increased Republican support, favorable regulatory expectations, and strong investor sentiment, has propelled Bitcoin and other digital assets into the spotlight, driving significant inflows and price appreciation. As the US political landscape continues to evolve, the crypto market remains closely attuned to potential policy shifts that could further shape its trajectory.