Crypto investments are on a remarkable rise, with digital asset inflows soaring to an impressive $407 million. This surge is largely fueled by the excitement surrounding the upcoming U.S. elections. Investors are increasingly drawn to cryptocurrencies, with Bitcoin emerging as the standout winner in this scenario. Its popularity is skyrocketing, pulling in a massive $419 million in inflows. This trend reflects a growing optimism about Bitcoin’s future, driven more by the political climate than by monetary policies. The recent shift in polling towards Republican candidates, perceived as more crypto-friendly, has only added to the momentum.
The United States is at the forefront of this crypto inflow wave, contributing a staggering $406 million. Canada trails at a distant second with $4.8 million. Interestingly, while Bitcoin enjoys this influx, short-Bitcoin products are seeing outflows of $6.3 million, indicating a growing confidence in Bitcoin’s upward trajectory among investors. Ethereum, however, is not experiencing the same success, with outflows totaling $9.8 million. This contrasts sharply with blockchain equity ETFs, which have recorded one of their largest weekly inflows of the year at $34 million, likely due to the rising Bitcoin prices drawing attention to blockchain-related investments.
Bitcoin ETFs are also experiencing significant activity. Recently, they recorded a daily net inflow of $253.54 million, pushing the cumulative total to an impressive $18.81 billion. This clearly indicates the growing interest in Bitcoin ETFs as a viable investment option. The total value traded on that 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. Fidelity’s FBTC ETF stood out as a top performer, attracting the largest one-day net inflow of $117.10 million, with net assets totaling $11.35 billion. On the other hand, Grayscale’s GBTC experienced a notable outflow of $22.09 million, highlighting the varying investor sentiments towards different Bitcoin ETFs.
While Bitcoin ETFs are thriving, Ethereum ETFs face challenges. They recorded a daily net outflow of $97.11K, with the cumulative net outflow reaching $558.88 million. Fidelity’s FETH ETF was a bright spot, attracting $8.61 million in net inflows, bringing its cumulative total to $454.50 million. However, Grayscale’s ETHE saw a one-day outflow of $8.71 million, with its cumulative net outflow now at $2.98 billion. This indicates a more cautious approach by investors towards Ethereum ETFs compared to their Bitcoin counterparts.
A recent survey by Charles Schwab reveals a growing interest in crypto ETFs among U.S. investors. The survey found that 45% of respondents plan to invest in crypto through ETFs over the next year, up from 38% the previous year. This growing interest in crypto now surpasses that for bonds and alternative assets, with only U.S. equities ranking higher. Millennial ETF investors are leading this trend, with 62% planning to allocate funds to crypto, compared to 48% for U.S. stocks, 47% for bonds, and 46% for real assets like commodities. In contrast, baby boomer ETF investors show significantly less interest in digital assets, with just 15% planning to invest in them. This generational divide highlights the differing attitudes towards crypto investments.
The surge in digital asset inflows, driven by election-related investor sentiment, showcases the growing appeal of cryptocurrencies, particularly Bitcoin. While Bitcoin enjoys a wave of optimism, Ethereum faces challenges, reflecting the dynamic nature of crypto investments. As interest in crypto ETFs continues to rise, especially among younger investors, the landscape of digital asset investments is set to evolve further.
