Cryptocurrency markets continue to attract significant investor interest due to political developments in the US. According to the weekly report published by CoinShares, a total of $407 million inflow was experienced in crypto asset investment products. Ethereum (ETH) recorded an outflow. This figure was recorded as one of the highest inflows in the markets in recent times. The report stated that these decisions of investors were largely driven by the upcoming US elections rather than monetary policies.
There is great interest in Bitcoin
According to the report, a large portion of these inflows were directed towards Bitcoin. Bitcoin became the most popular asset in the cryptocurrency world with an inflow of $419 million. It is thought that developments regarding the upcoming elections in the US, especially with the increase in support for Republicans, have increased the interest in Bitcoin investments. The fact that Republicans have a more supportive attitude towards crypto assets was perceived as a positive signal by investors.
Despite this great interest in Bitcoin, investors who took short positions were negatively affected by this trend. There was an outflow of $6.3 million in short Bitcoin investment products. In other words, investors who believed that Bitcoin prices would fall suffered significant losses during this period.
The impact of the US elections on Bitcoin, Ethereum and others
The CoinShares report emphasized that this movement in crypto asset markets was related to political developments in the US rather than monetary policies. The fact that money outflows continued in cryptocurrency markets despite stronger-than-expected economic data in the US shows that developments related to the elections affect investor decisions more. The increase in Republican polls, especially after the last debate attended by US vice presidential candidates, significantly increased the interest in crypto asset markets. Crypto asset investments in the US made up the majority of these inflows with $406 million. Canada was the only country outside the US with a significant inflow of $4.8 million.
What is the situation with Ethereum and other assets?
Unlike Bitcoin, Ethereum investment products experienced an outflow of $9.8 million last week. This shows that Ethereum has recently lost interest among investors and that investors are turning to other crypto assets such as Bitcoin. Unlike Ethereum, multi-asset investment products continued to see inflows for the 17th consecutive week. However, these inflows were quite limited at only $1.5 million. Solana, XRP, LTC, and TRON recorded inflows.
Another notable development of the week was the increase in Blockchain stock ETFs. These products recorded one of the highest weekly inflows of the year with an inflow of $34 million last week. It is thought that these inflows occurred due to the increase in Bitcoin prices. The increase in Bitcoin prices also increased the interest in the stocks of companies investing in blockchain technology, leading to these ETFs being preferred by a large number of investors.
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