Last week, the cryptocurrency market witnessed a substantial inflow of investments, influenced by the post-election momentum. From November 3 to November 9, crypto investment products attracted $1.98 billion, pushing global assets under management to an unprecedented peak of $116 billion, as reported by CoinShares on November 11.
This influx marks the fifth consecutive week of net positive flows, accumulating a total of $7.7 billion—accounting for 24% of the year’s $31.3 billion in inflows so far.
U.S. Bitcoin ETFs Lead the Charge
Consistent with previous weeks, the U.S. market dominated these inflows, predominantly through spot Bitcoin exchange-traded funds (ETFs). Bitcoin products alone saw $1.8 billion, reaching a cumulative $9 billion since the U.S. Federal Reserve’s interest rate cut in September—the first in four years.
James Butterfill, CoinShares’ research director, attributed the sustained inflows to “a combination of a supportive macro environment and seismic shifts in the U.S. political landscape.”
While the majority of the inflows were concentrated in the U.S., totaling $1.95 billion, Europe experienced modest contributions, with Switzerland and Germany adding $23 million and $20 million, respectively. Conversely, Sweden saw a net outflow of $25.7 million.
In a sign of broadening investor interest, spot Ether ETFs recorded their largest inflow since their inception in July, with $157 million. This surge indicates a growing confidence in Ethereum amid a buoyant crypto market.
Altcoins also benefited from the positive market sentiment. Solana products recorded inflows of $3.9 million, while Uniswap and Tron saw inflows of $1 million and $0.5 million, respectively. On the flip side, there was a notable $2.7 million outflow from short-Bitcoin products, reflecting an overall bullish sentiment in the market.
The robust inflows contributed to driving Bitcoin’s price to a new record high of over $80,000 on November 10, with the momentum carrying the price further up to $82,379 by November 11, as per CoinGecko data.
A New Era for Crypto
The significant inflows into cryptocurrency investment products post-election are not just a testament to the market’s resilience but also an indication of its evolving nature. As political landscapes shift, so does the economic environment, affecting investor sentiment and strategies. The recent electoral outcomes have clearly buoyed the market, prompting both retail and institutional investors to increase their stakes in digital assets. This trend is particularly evident in the record inflows into both Bitcoin and Ether ETFs, underscoring a growing acceptance of crypto assets as a legitimate component of diversified investment portfolios.
As we move forward, the key will be to monitor how these investments perform in a dynamically changing global economic framework. With potential regulatory adjustments on the horizon, particularly in the U.S., the crypto market may be at the cusp of a new era of mainstream integration and innovation. The ongoing expansion of investment products and the broadening base of investors are promising signs that cryptocurrency will continue to capture a significant portion of the market, reshaping how we think about money and investments in an increasingly digital world.
