Recent data released by CoinShares, a premier provider of digital asset management services, indicates a notable uptick in investment flows into the crypto market following US elections. Their “Digital Asset Fund Flows Weekly Report” details this trend.
Crypto Investments Reach an All-Time High of $116 Billion
According to a report released this week by Digital Asset Investment Products Association Limited (DAIPA), digital asset investment products saw an inflow of $1.98 billion, pushing global assets under management (AuM) up to an unprecedented $116 billion for an unprecedented five consecutive weeks, raising year-to-date figures to $31.3 billion. Of this investment amounting to approximately one-quarter billion USD was recorded in the US; predominantly driven by favorable macroeconomic conditions as well as recent political changes such as Donald Trump becoming president.
Not confined solely to the US, Europe also experienced significant inflows; Switzerland and Germany respectively contributed $23 million and $20 million, with Bitcoin leading the charge, bringing in $1.8 billion largely thanks to US Federal Reserve’s decision to cut interest rates earlier in cycle. James Butterfill, Head of Research for CoinShares attributed strong investor sentiment due to supportive macro environments as well as dramatic shifts within US politics.
Increase in Interest for Ethereum and Other Altcoins
Ethereum has also experienced an upsurge in investor enthusiasm, with inflows totaling $157 million since the debut of ETFs based on Ethereum in July 2024. This renewed confidence suggests an optimistic outlook on its performance going forward.
Other altcoins like Solana, Uniswap and Tron have experienced increased inflows too – $3.9 million for Solana; $1 million for Unswap; and $500,000 for Tron. Blockchain equities attracted significant investor attention too with $61 million of inflows into them over this timeframe; likely driven by macroeconomic factors and anticipation over regulatory clarity following Donald Trump’s victory in the 2024 US elections.
Trump’s victory appears to have ignited a bull run across the cryptocurrency market, with Bitcoin and other key crypto assets seeing remarkable increases. Over the last week alone, Bitcoin has reached new all-time highs, jumping more than 20% within seven days to hit $82,379. Ethereum, Solana and Dogecoin have also experienced substantial price gains, signalling robust market expansion.
