TL;DR
- Digital assets see record inflows of $1.98 billion following US election
- The United States leads inflows with US$1.95 billion, followed by Switzerland and Germany.
- Bitcoin and Ethereum are the top investors, while altcoins and blockchain stocks are also seeing interest.
Digital asset investment products have seen a notable increase in inflows totaling US$1.98 billion following the recent US elections, marking the fifth consecutive week of capital inflows into this sector.
This momentum has pushed global assets under management to a new all-time high of $116 billion. Supporting this surge are favorable macroeconomic conditions and significant changes in the U.S. political landscape.
This information has been shared by James Butterfill on the CoinShares research blog.
The United States was the main recipient of these flows, capturing US$1.95 billion of the total inflows. Europe also contributed, with Switzerland and Germany attracting US$23 million and US$20 million respectively.
This investment flow is largely a response to the recent economic policy of the US Federal Reserve, which lowered interest rates in September, thus creating a favorable environment for the digital asset market.
Asset-specific, Bitcoin was the clear leader, capturing $1.8 billion in inflows, reflecting growing long-term market confidence. Since the Federal Reserve cut rates for the first time this cycle, Bitcoin inflows have reached $9 billion.
Ethereum, which has been more volatile, meanwhile, saw its largest inflow of capital since July, at $157 million. This rally in Ethereum reflects renewed confidence among investors following the launch of several ETFs (exchange-traded funds) during the year.
Investment in Altcoins and Related Assets
In addition to major digital assets, several altcoins also caught the attention of investors. Solana, Uniswap, and Tron received $3.9 million, $1 million, and $0.5 million respectively, consolidating their position as attractive alternatives within the crypto market.
Interest in blockchain-related stocks also remains high, racking up $61 million in inflows, underscoring enthusiasm for the technology’s potential in the financial sector and beyond.
This renewed interest in digital assets could be due not only to the favorable macroeconomic environment, but also to the growing acceptance of these assets as a legitimate and diversified investment class.
The influx of capital into both established assets and blockchain and altcoin alternatives suggests a maturing market, with more and more institutional investors seeking to capitalize on the sector’s growth and innovation.
With a positive outlook and the consolidation of digital assets in the global economy, these capital flows are expected to remain strong in the coming months.
