Record inflows into cryptocurrency investment products in 2024

Crypto funds have seen net inflows of $29 billion this year, driven by election euphoria.

Cryptocurrency investment products reach a new record high
According to CoinShares, global cryptocurrency funds recorded net inflows of $2.18 billion in the last week alone, bringing the annual total to an impressive $29.2 billion. This increase was attributed to the election euphoria followed by the Republican victory, which stimulated investor interest.

Bitcoin as protagonist
Bitcoin-related products have been the main beneficiaries of these inflows, with $2.16 billion in weekly net inflows. This trend highlights Bitcoin's continued attractiveness as an investment asset, despite market volatility. Investors seem confident in Bitcoin's growth potential, especially in a favorable political environment.

Dominance of U.S. funds
U.S.-based funds dominated inflows, adding $2.23 billion to the total. In contrast, other countries experienced net outflows, suggesting a concentration of investor interest in the U.S. market. This phenomenon may reflect greater confidence in the U.S. financial system than in other global markets.

Assets under management and trading volumes
For the second time, total assets under management in crypto funds exceeded the $100 billion, a positive sign for the sector. In addition, weekly trading volumes increased by the 67%, reaching $19.2 billion. These data indicate growing interest and activity in the cryptocurrency market, suggesting that investors are looking for opportunities amid economic uncertainties.

Future prospects for bitcoin
Bitcoin's price has seen an increase of more than 30% from a minimum of $52,600 early September, reaching $68,818. However, it has declined by about 7% from the peak of $73,500 Oct. 29. Analysts predict that in the event of a Trump victory, Bitcoin could potentially reach values between $80,000 e $90,000, further fueling investor interest.

Conclusion
The growth of inflows into cryptocurrency investment products is a clear indicator of investor confidence in the sector. With election euphoria continuing to influence the market, it will be interesting to watch how the dynamics develop in the coming months. Investors should remain informed and ready to seize opportunities as they arise.