Record $2.2 Billion Crypto Inflows Led by Bitcoin in U.S. Amid Political Uncertainty

In a surprise, crypto investment products have seen $2.2 billion in inflows over the past week, the highest since July. According to CoinShares’ latest report, the interest in crypto is strong despite the volatility.

The inflows are concentrated in the U.S. while other regions are seeing outflows.

James Butterfill from CoinShares says this is due to the upcoming U.S. political events in November which are causing uncertainty in traditional markets.

This is driving demand for crypto assets, particularly from institutional investors looking for hedges against market turmoil.

The $2.2 billion number tells us something important: the U.S. is leading the way in the current crypto investment wave, likely ahead of fiscal and regulatory changes.

Other regions are not seeing the same level of interest, global inflows are mostly around Bitcoin.

You are aware that US Citizens can’t participate in Polymarket wagering, so all the bets are by foreign influencers. (Talk about election interference!) And as a Trump backed Thiel owned bitcoin platform, Thiel himself has direct almost $30 million in wagers on Trump.

— Jim Garner (@Jim_GarnerCO) October 22, 2024

Bitcoin Takes 97% of Inflows

No surprise, Bitcoin is the winner, taking 97% of the $2.2 billion. With institutional adoption and digital gold status, Bitcoin is attracting capital despite global economic uncertainty. This is not surprising given Bitcoin’s track record but the concentration is even more so.

Bitcoin’s ETFs and exchange-traded products (ETPs) are at the heart of this. The data shows U.S. investors are focused on Bitcoin ETFs, with trading volumes much higher in those than altcoins.

As Bitcoin consolidates around $67,000, this inflow suggests investors are confident in its future direction despite the technical resistance at $69,000 as noted by analysts.

Material Indicators, a trading resource, called this Bitcoin activity a “flash sale” on Binance, the largest exchange, meaning investors are positioning for a bigger move.

But some caution remains. Keith Alan, co-founder of Material Indicators, recently said for Bitcoin to break above its all time highs, full candles need to close above $69,000, a key technical and psychological level for bulls.

BIG BREAKING 🚨

BLACKROCK AND FIDELITY'S SPOT #BITCOIN ETFS DID A COMBINED $1.37 BILLION IN TRADING VOLUME TODAY. 🔥

ARE YOU PAYING ATTENTION? 👀 pic.twitter.com/xKjpwthfgp

— BITCOINLFG® (@bitcoinlfgo) October 22, 2024

XRP Inflows Steady

While Bitcoin has been the main focus, XRP has been gaining traction. Though smaller inflows, the steady investment in XRP products is worth noting. According to CoinShares, XRP ETPs have seen inflows over the past few weeks, $26 million since the start of the year.

XRP is getting interest from major financial players, including Bitwise, to launch XRP ETFs. The growing institutional interest in XRP could be due to its value proposition in cross border payments and speculation around regulatory clarity in its U.S. legal battles.

Bitwise, a large ETP player, has filed for XRP ETF, showing clear demand from institutional and retail investors. While Bitcoin is dominating, the slow rise in XRP inflows means some investors are looking to diversify beyond the flagship.

Bottom Line:

• $2.2 billion in inflows last week, highest since July, driven by U.S. investors.

• Bitcoin took 97% of inflows, interest is in U.S., global markets saw outflows.

• XRP ETPs saw $26 million inflows this year, demand is rising and an XRP ETF could be coming.

As the digital assets continue to get more mainstream, this could be just the beginning. U.S. politics and crypto ETFs coming soon. Inflate.