Crypto markets are seeing a massive influx of capital in October, with $3.4 billion in investments, including $900 million in the last week alone. This spectacular increase comes in a particular American political context, where polls favorable to the Republicans are stimulating the confidence of institutional investors.
A record month of October for investments
Major asset managers like BlackRock and Fidelity saw massive inflows into their crypto funds in the last week of October.
According to the last CoinShares reportdigital asset investment products attracted another $901 million, bringing the monthly total to $3.36 billion. This performance represents 12% of assets under management and makes October 2024 the fourth most important month in history in terms of capital inflows.
Bitcoin largely dominates these investments with $920 million in weekly net inflows. BlackRock's IBIT particularly stood out, leading U.S. spot Bitcoin ETFs that totaled nearly $1 billion in net inflows. This dynamic propelled the price of Bitcoin to $68,554, an increase of 62.2% since the start of the year.
The Republican Effect on Crypto Markets
James Butterfill, director of research at CoinShares, draws a direct link between this increase in investments and the American political context. “ Current flows are strongly influenced by political dynamics in the United States, with recent capital inflows coinciding with Republican gains in the polls.“, he analyzes.
Data from the Polymarket platform reveals that the pro-crypto Republican candidate now leads in six key states, with an 84% probability of winning a Republican Senate. This prospect of a potentially crypto-friendly administration is boosting institutional investor confidence.
This optimism is also reflected in the annual figures, with inflows totaling $27 billion since January, shattering the previous record of $10.5 billion set in 2021. This trend marks a major turning point in the institutional adoption of cryptos, now considered as a strategic asset class in an uncertain political context.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
