Emily Walker
CoinShares, a prominent firm in cryptocurrency asset management, has published its latest report, “Digital Asset Fund Flows Weekly,” which underscores a significant influx of investments following the recent US elections.
Crypto Fund Flows Reach $116 Billion
According to the report, investment products in digital assets received $1.98 billion in new funds, pushing the total global assets under management (AuM) to an unprecedented $116 billion. This trend marks five consecutive weeks of inflows, bringing the cumulative total for the year to $31.3 billion.
The bulk of these inflows originated from the United States, contributing $1.95 billion to the total, spurred by favorable economic conditions and political changes, particularly following Donald Trump’s election as the 47th president.
Meanwhile, Europe experienced some increases as well, with Switzerland and Germany reporting inflows of $23 million and $20 million, respectively. Bitcoin was the standout, drawing in $1.8 billion, aided by the US Federal Reserve’s earlier decision to reduce interest rates.
James Butterfill, CoinShares’ Head of Research, attributed the upbeat investor sentiment to a combination of supportive macroeconomic factors and significant transformations in the US political scene. He remarked:
The supportive macro environment and major changes in the US political landscape are likely contributing to the positive investor sentiment.
Renewed Enthusiasm for Ethereum and Altcoins
The report also noted a positive shift in sentiment toward Ethereum, which recorded inflows of $157 million, its largest weekly inflow since the launch of Ethereum-based ETFs in July 2024.
This uptick for Ethereum, previously struggling with performance issues, indicates a revival of investor trust in its potential.
Other altcoins also benefited from the inflow surge, with Solana gaining $3.9 million, and Uniswap and Tron attracting $1 million and $500,000 respectively. Additionally, blockchain equities saw inflows of $61 million.
The overall increase in investments across various digital assets suggests a widespread rebound in investor sentiment, likely stimulated by positive macroeconomic trends and growing optimism about regulatory clarity following Trump’s election victory.
This political development has not only boosted inflows but may have also sparked a significant bull market in the crypto sector.
Currently, Bitcoin and other cryptocurrencies are experiencing substantial gains. In just the past week, Bitcoin has consistently reached new all-time highs, increasing over 20% and recently peaking at $82,379.
While other leading cryptocurrencies such as Ethereum, Solana, and Dogecoin have yet to hit new all-time highs, they have all seen notable price increases; for instance, Dogecoin has surged by 84% over the past week.
Featured image created with DALL-E, Chart from TradingView