Last week, CoinShares reported a significant inflow of institutional funds into crypto products, reaching $2.2 billion against the backdrop of the US elections.
Institutional Investments in Crypto Products
CoinShares recorded an inflow of $2.2 billion in institutional investments in crypto products over the last week. This marks a 15% increase from the previous week, which saw $1.98 billion in inflows. For 2023, digital assets have attracted a total of $33.5 billion in investments, setting a new record of assets under management (AUM) at $138 billion.
Impact of US Elections on the Crypto Industry
The US elections on November 5 also contributed to the inflow of investments into cryptocurrencies. James Butterfill, head of research at CoinShares, attributes this to a looser monetary policy and the Republican Party's victory. During this period, Ethereum and Solana saw investments of $646 million and $23.9 million, respectively. Meanwhile, multi-asset and Binance Coin recorded outflows.
Crypto Market Outlook
Donald Trump's retention of the presidency is expected to positively affect the cryptocurrency industry due to a pro-crypto policy stance. Increased institutional support and broader cryptocurrency acceptance are anticipated. James Butterfill noted that this could help further solidify Bitcoin's place in the global financial system.
CoinShares' research indicates that institutional investments in the crypto market continue to grow, driven by political events and pro-crypto policies. This may lead to a broader acceptance of digital assets and their integration into the global financial system.
