US elections fuel $2.2B surge in crypto inflows

Crypto investment inflows hit $2.2 billion last week, the highest level since July 2023, as optimism grows around a potential Republican victory in the upcoming U.S. elections. 

This surge, which represents a fivefold increase from the previous week, is driven by investor confidence in the potential for pro-crypto regulations under Republican leadership. 

According to CoinShares, Bitcoin led the way with $2.13 billion in inflows, while Ethereum saw $57.5 million in positive flows. 

In contrast, multi-asset investment products experienced $5.3 million in outflows, breaking a 17-week streak of consecutive inflows. 

Analysts attribute the strong performance to expectations that a Republican win could foster a more favorable regulatory environment for digital assets. 

"We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming U.S. elections, as they are generally viewed as more supportive of digital assets. 

This, in turn, has led to positive price momentum," the CoinShares report noted. 

With just 15 days left until the elections, the crypto market is closely watching the political developments. 

Data from Polymarket shows Donald Trump leading Vice President Kamala Harris by 22.9 percentage points, adding to market speculation that a Trump victory could result in more crypto-friendly regulations. 

A recent analysis on X suggested that a shift in U.S. leadership could create a "positive regulatory environment," leading to clearer guidelines for crypto businesses, the potential approval of crypto ETFs, and a surge in institutional investments. 

Total assets under management in the digital asset space have now reached nearly $100 billion, with continued growth anticipated if the political landscape shifts in favor of cryptocurrency.