CoinShares, a leading digital asset manager, has reported a significant surge in institutional inflows into crypto products, with $2.2 billion flowing into the market last week. This represents a 15% increase from the previous week’s $1.98 billion, marking a new high for the sector.
The spike in inflows came just after the U.S. presidential election on November 5, with the political outcome fueling further optimism in the cryptocurrency market. As of November 18, year-to-date inflows into digital assets have reached $33.5 billion, pushing assets under management (AUM) to a record $138 billion.
Bitcoin (BTC) led the inflow charge, attracting $1.48 billion, or 67% of the total. Ethereum (ETH) followed with $646 million, while Solana (SOL) recorded $23.9 million in inflows. The growth in Ethereum was partly driven by the Beam Chain network upgrade proposal, which helped boost its inflows to $157 million. Meanwhile, both multi-asset products and Binance Coin (BNB) saw outflows.
Among the notable beneficiaries was BlackRock’s iShares Bitcoin Trust ETF (IBIT), which saw a dramatic 63% surge in inflows, amounting to $2.1 billion. However, other funds, including Grayscale and Fidelity, experienced outflows ranging from $8 million to $153 million.
James Butterfill, Head of Research at CoinShares, attributed the inflows to a combination of factors, including looser monetary policy and the possibility of a Republican-led Congress and Presidency. He noted that a potential second term for Donald Trump could further boost the crypto market, citing Trump’s previous pro-crypto rhetoric and the possibility of crypto-friendly regulations under his administration.
Butterfill also highlighted the positive outlook surrounding the Bitcoin Act, proposed by Republican Senator Cynthia Lummis, and the concept of a Bitcoin Strategic Reserve. These factors, along with broader political shifts, are contributing to a growing sense of confidence among crypto investors, particularly in Bitcoin’s future potential.
As the crypto market continues to gain momentum, these record inflows suggest a robust outlook for digital assets in the coming months, with institutional investors leading the charge.
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