Highlights:
- The weekly report displays the cash inflows of various digital assets.
- The upcoming US election boosted the key factors behind the fund flows in the market.
- Bitcoin received the highest funding, unmatched by other altcoins.
A new CoinShares Weekly Asset Fund report shows massive inflows to crypto products. Per the report, the October cash inflows saw the current Asset Under Management (AUM) to over $100 billion. The funding will have a huge impact on Bitcoin and other altcoins hastening the web3 adoption.
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This is the second time the crypto market has witnessed such an event. The first in 2024 was recorded around June when a whopping sum invested in the total Asset Under Management (AUM) hit the $102 billion mark.
Projected Key Factor for this Movement
Amidst the elation in the ecosystem, underground research is being conducted to determine the potential drive behind the massive funding of digital assets. Market analysts and enthusiasts envisioned the most likely influence to be the upcoming US general election involving the republican Donald Trump and Kamala Harris, the Democratic.
As regards the varied, yet unified stance of the two major presidential contenders on virtual currencies, the election is the undisputed key factor to the funding movement. Amidst the new development, the digital market witnessed relatively insignificant cash outflows late last week, hinting at the volatile nature of Bitcoin and the virtual world as a whole.
Brief Breakdown of the Weekly Report
Amid last gasps campaigns, the market witnessed a funding equivalent of $2.2 billion, supporting the growth and adoption of cryptocurrencies globally. From the weekly analysis, different virtual currencies received backing from top investors.
📈 Digital asset investment products saw inflows of US$2.2bn last week. #Bitcoin and #Ethereum saw inflows of US$2.2bn and US$9.5m respectively.
To understand why Bitcoin is so sensitive to the US election and to get our insights, read our full report: https://t.co/3TMajAV8q1 pic.twitter.com/zG28scWtnv
— CoinShares (@CoinSharesCo) November 4, 2024
Bitcoin, the giant of the digital market, witnessed the highest cash inflow of $2.16 billion. The leading altcoin project, Ethereum, joined the trail with about $9.5 million in funding. Solana also saw an additional $5.7 million in its blockchain account. No recorded cash support for BNB and Tron.
The dominant Bitcoin inflows opened the pathway for altcoins to thrive. After the approval of spot Bitcoin ETFs in January, crypto funds flows skyrocketed with positive factors on the price charts. Last week, the crypto market leader came close to its all-time high. Price highs in the bull cycles have spiked sentiments leading to asset accumulation.
According to the report, the main characters behind the cash flow movement were displayed. Topping the list is the United States, which has a weekly funding system of $2.2 billion. In close support, Germany donated about $5.1 million. Australia also disbursed $2.1 million into the market with other jurisdictions making inflows. These contributions pushed the year-to-date inflows to $29.2 billion.
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