The past week marked a historic surge in investments in digital asset products, with a total influx of $2.2 billion.
This surge boosted the year-to-date inflows to an unparalleled $29.2 billion, as per the most recent report by CoinShares.
Exceeding $100B in Total AUM
According to James Butterfill, Head of Research at CoinShares, the continuous influx of capital, coupled with recent price surges, has propelled the total Assets Under Management (AUM) to surpass $100 billion.
It is significant to note that this notable milestone was previously reached only in early June 2024, when the AUM peaked at $102 billion. This achievement signals a rejuvenated trust in digital assets and emphasizes the growing potential of the market.
Domination of U.S. in Digital Asset Inflows
Notably, the United States took the lead in digital asset inflows, totaling $2.2 billion.
This surge was primarily fueled by the growing optimism surrounding the upcoming election.
In explaining this, Butterfill stated,
“We believe the excitement regarding the possibility of a Republican victory drove these inflows, particularly during the initial days of last week.”
As election polling trends shifted, minor outflows were observed on Friday. This highlighted Bitcoin’s heightened sensitivity to the U.S. election environment and the market’s rapid response to changing political dynamics.
BTC’s Overwhelming Influxes Overshadow ETH
Unsurprisingly, Bitcoin attracted the majority of digital asset inflows last week
Additionally, an extra $8.9 million was allocated to short-Bitcoin positions following its recent price surge.
In contrast, Ethereum [ETH] only witnessed modest inflows of $9.5 million, reflecting a relatively subdued investor sentiment compared to Bitcoin, the leading cryptocurrency.
Data from SoSo Value further revealed a substantial contrast. Ethereum experienced total net outflows of $554.66 million on the 4th of November.
Meanwhile, Bitcoin’s net inflows remained robust at $23.61 billion, solidifying its dominant position in the digital asset market.
Election Day: Changing Probabilities and Market Impact
With the American population casting their votes, recent predictions indicate a shift in the odds of winning the presidency.
Initially, Donald Trump held a significant lead over Kamala Harris, with a chance of winning exceeding 60%.
However, the latest figures indicate that Trump maintains a 59.5% chance of victory, while Harris is at 40.6% based on the latest Polymarket data.
With political developments influencing inflows, the digital asset market remains a focal point as an indicator of financial advancements and evolving investor sentiment amid the high-stakes U.S. election.