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    Cryptocurrency investments surge ahead of US presidential elections with $2.2 billion inflow into digital assets

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    Cryptocurrency saw a significant spike in investments leading up to the US presidential elections, with $2.2bn poured into digital investment products from October 26 to November 2. The majority of these investments were in Bitcoin, which alone saw inflows of $2.2bn last week. The total assets under management in cryptocurrencies rose to over $100bn for the second time ever. However, according to CoinShares, investments were partially withdrawn on the Friday before the election, reflecting Bitcoin’s responsiveness to US polling data.

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    Cryptocurrency investing surged in the week leading up to the US presidential election. From October 26 to November 2, $2.2 billion were poured into digital investment products. That brought this year’s total to a record-shattering $29.2 billion, according to CoinShares’ new report.

    This past month marks four straight weeks of buying cryptocurrency, totaling more than $5.7 billion, which is about 19% of all the money put in this year.

    With cryptocurrency’s spike in value, total assets under management rose to over $100 billion for only the second time, reaching the same peak as June with $102 billion.

    The wave of investing was partly brought on by the upcoming presidential election in the US. CoinShares’ lead researcher, James Butterfill, believes the possibility of a Republican win sparked the influx in investment earlier in the week. However, as polling data shifted, there were slight outflows on the Friday before the election, showing just how responsive Bitcoin is to the US elections.

    Just like in October, the vast majority of investments went into Bitcoin, which brought in around $2.2 billion last week. As Bitcoin’s price got close to record-highs, investors also began buying up short-Bitcoin products, tallying $8.9 million in weekly flows.

    Unlike Bitcoin, Ether investments were minor, making up just $9.5 million in flows. This departs from the positive trend seen with Bitcoin and Solana (which took in $5.7 million last week). Contrastingly, Ether and Solana were hot investment options in the US, with inflows totaling over $2.2 billion. Meanwhile, Germany had more modest inflows of $5.1 million.

    In the other direction, Canada and Sweden withdrew their investments the most last week, offloading $24 million and $20 million, respectively.

    As for Bitcoin exchange-traded funds, they’ve been on the rise leading up to the US election, notably BlackRock’s BTC ETF. It broke the $30 billion mark on October 30. That said, some market analysts have warned high Bitcoin inflows could be followed by drops in prices, with major Bitcoin ETF purchases typically preceding bearish price movements.

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