Cryptocurrency investment products experienced a significant surge in inflows, reaching $407 million, largely driven by investor sentiment surrounding the upcoming U.S. elections. Political developments, rather than monetary policy outlooks, are influencing investor decisions. Stronger-than-expected economic data failed to reverse outflows, while a recent shift in polling towards Republicans sparked a rapid increase in both inflows and asset prices. The U.S. accounted for the bulk of the inflows at $406 million, with Bitcoin emerging as the primary beneficiary, attracting $419 million in inflows. Short-Bitcoin products experienced outflows of $6.3 million, reflecting investors’ optimism about Bitcoin’s future. Multi-asset investment products continued their streak with a 17th consecutive week of inflows, though modest at $1.5 million. Ethereum saw continued outflows totaling $9.8 million, and blockchain equity ETFs recorded one of their largest weekly inflows of the year, drawing $34 million.
Bitcoin ETFs saw significant inflows on Friday, October 11, with a daily total net inflow of $253.54 million, pushing the cumulative total to $18.81 billion. The total value traded on the day reached $2.06 billion, with the total net assets of Bitcoin ETFs amounting to $58.66 billion, representing 4.71% of Bitcoin’s market cap. Among the top performers, Fidelity’s FBTC ETF saw the largest one-day net inflow of $117.10 million, with net assets totaling $11.35 billion. Grayscale’s GBTC experienced a notable outflow of $22.09 million. Ethereum ETFs showed a decline, with a daily total net outflow of $97.11K and a cumulative net outflow of $558.88 million. Fidelity’s FETH ETF attracted $8.61 million in net inflows, while Grayscale’s ETHE experienced a one-day outflow of $8.71 million.
A recent survey commissioned by financial services giant Charles Schwab revealed that nearly half of U.S. investors plan to invest in cryptocurrency ETFs. The survey found that 45% of respondents plan to invest in crypto through ETFs over the next year, an increase from 38% the previous year. The growing interest in crypto has surpassed demand for bonds and alternative assets, with only U.S. equities ranking higher, as 55% of participants indicated plans to invest in stocks. Millennial ETF investors showed even stronger enthusiasm for crypto, with 62% intending to allocate funds to the sector, compared to 48% for U.S. stocks, 47% for bonds, and 46% for real assets like commodities. In contrast, baby boomer ETF investors demonstrated significantly less interest in digital assets, with just 15% planning to invest in them. Crypto’s high ranking in investment plans in the survey has been described as “pretty stunning” by Eric Balchunas, senior ETF analyst at Bloomberg Intelligence.
The data presented by CoinShares reflects the increasing interest and investment in digital asset products, driven by various factors including political developments and investor sentiment. The surge in inflows, particularly in Bitcoin, indicates a positive outlook for the cryptocurrency market, with investors showing optimism about its future. The strong performance of Bitcoin ETFs and the growing interest in investing in crypto through ETFs among U.S. investors highlight the shifting landscape of traditional investment preferences towards digital assets. The survey results from Charles Schwab further emphasize the growing appeal of cryptocurrency ETFs, especially among younger investors, signaling a potential shift in investment trends in the near future. Overall, the data points to a bullish sentiment surrounding digital assets, pointing towards a continued growth in the cryptocurrency market.
