Bitcoin BTC/USD and Ethereum ETH/USD Last week, exchange-traded fund (ETF) inflows totaled $407 million.
This inflow was primarily driven by changing political winds rather than monetary policy considerations.
what happened: The recent US Vice Presidential debate and subsequent opinion polls show that a shift towards the Republican Party, which is perceived to be more crypto-friendly, led to an immediate rise in both capital inflows and prices. james butterfillHead of Research at CoinShares.
The political fallout overshadowed strong economic indicators and had minimal impact on stemming the flow, analysts said in a report on Monday.
As expected, given the political nature of these inflows, the United States dominated with net inflows of $406 million, with Canada contributing only $4.8 million.
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Bitcoin emerged as the main beneficiary, attracting $419 million in inflows. Conversely, short Bitcoin products saw an outflow of $6.3 million. The biggest winner is iShares Bitcoin Trust (NASDAQ: IBIT) and Fidelity Wise Origin Bitcoin Fund FBTCresulting in net inflows of $158 million and $138 million, respectively.
Multi-asset investment products continued to see positive inflows for the 17th consecutive week, albeit at a low level of $1.5 million. Ethereum has resumed its outflow trend, losing $9.8 million last week.
Blockchain equity ETFs recorded the biggest weekly inflows of the year, totaling $34 million. This surge likely reflects investors' optimism following the recent rise in Bitcoin prices.
Underscoring the broader implications of these trends, Butterfill said, “Investor decisions are likely to be influenced more by the upcoming US election than by the outlook for monetary policy.”
Price action: Bitcoin rose 3.4% to $64,875 on Monday morning. Ethereum rose 3.5% to $2,555.
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