Digital asset investments surged to $2.2B, driven by expectations of a Republican win under Donald Trump. U.S. inflows were $2.3B, while other regions saw minor outflows.
Last week, investments in digital asset investment products reached a record high of $2.2 billion, the highest since July 2024. Experts attribute this spike to the potential victory of Donald Trump’s Republican Party in the upcoming US election.
Inflows into the United States totaled $2.3 billion, while only small outflows occurred in other regions. Profit-taking operations outside of the United States may have caused these outflows. In the next election for the United States, Donald Trump is now in the lead with odds of 62.1%, while Harris’s odds are 37.8%.
There is a growing sense of optimism inside the cryptocurrency market as a result of this growing confidence in a Republican triumph. As a direct result of this, the market has witnessed an increase in investment of $2.2 billion. Traders anticipate favorable regulatory conditions under a future Trump government, which is why the recent increase, representing the greatest influx since July, has occurred.
Crypto Markets Rally on Donald Trump 60% Odds, Adds $2.2 Billion Inflows
As a result of the perception that Donald Trump is supportive of digital assets, investors are increasingly wagering on the likelihood of regulations that are more favorable to cryptocurrencies. According to the most recent statistics from Polymarket, Donald Trump is in the lead with 62.1%, which is a gain of 2.1%, while Kamala Harris is in second place with 37.8%, which is a decrease of 2.3%.
These inflows primarily benefited Bitcoin investment products, contributing an additional $2.1 billion to the total. Both the growing optimism regarding Donald Trump’s likelihood of winning the election and the appreciation of bitcoin’s price contributed to the rise in demand.
Additionally, there was significant activity in Bitcoin funds, and inflows into short-Bitcoin products increased by $12 million, the highest since March. Products based on Ethereum trailed closely behind, attracting an additional $58 million in inflows, underscoring the broader market enthusiasm associated with the US election.
Other altcoins like Solana and Litecoin also had significant inflows, with $2.4 million and $1.7 million, respectively. However, multi-asset products, which often cater to investments that are more diverse, experienced withdrawals of $5.3 million, bringing a stop to a string of inflows that lasted for seventeen weeks.
Despite the fact that the market in the United States had huge inflows of $2.3 billion, the picture in other regions was significantly different. A number of nations, including Canada, Sweden, and Switzerland, experienced net outflows of $19.9 million, $18.2 million, and $14.9 million, respectively.
One possible explanation for these outflows is that they are the outcome of profit-taking activities that occurred after the recent price gain. In addition, Mark Cuban, a billionaire, recently voiced his disapproval of Donald Trump’s campaign, implying that it has become more about Elon Musk than it is about the former president himself.
The comments made by Cubans are indicative of the growing influence that Musk, a notable Trump supporter, is exerting on the Republican’s candidacy for the presidency in 2024. Cuban also suggested Polymarket odds are unreliable.
He asserted that a significant portion of the betting activity on the platform is carried out by investors from other countries rather than by Americans. Despite the fact that Elon Musk, CEO of Tesla, recently referenced XRP at a rally in Pennsylvania, these criticisms of Musk’s involvement in Donald Trump’s campaign have come about.
When questioned about the XRP ledger and the potential adoption by various financial institutions, Musk remained neutral and reiterated his support for the cryptocurrency sector as a whole.
