Crypto Inflows Hit $2.2B Amid Rising Confidence in Trump’s Election Odds
Digital asset inflows surged to $2.2 billion last week, driven by increasing optimism over Donald Trump’s chances in the upcoming U.S. election, with his odds currently at 62.1%. This marks the highest inflow since July 2024, while other regions saw modest outflows.
Key Highlights:
– Digital asset inflows reached $2.2 billion, primarily due to Trump’s 62.1% election odds.
– Bitcoin led the inflows with $2.1 billion, followed by Ethereum with $58 million.
– The U.S. saw $2.3 billion in inflows, contrasting with minor outflows from other regions.
The recent surge in digital asset investment products, totaling $2.2 billion, has been linked to the potential for a Republican win in the upcoming U.S. election. With Trump leading the polls, market optimism has fueled the largest inflows since mid-2024, as traders anticipate favorable regulatory conditions under a possible Trump administration.
U.S. markets recorded $2.3 billion in inflows, while other regions like Canada, Sweden, and Switzerland saw outflows, possibly due to profit-taking following recent price increases.
Crypto Market Gains on Trump’s 60% Odds, Adds $2.2 Billion:
Currently, Trump leads with 62.1% odds against Kamala Harris’s 37.8% in the election, sparking optimism in the crypto market. This confidence has driven a $2.2 billion inflow, the largest seen since July, as investors anticipate a more crypto-friendly environment under a Trump presidency. According to recent Polymarket data, Trump’s odds increased by 2.1%, while Harris’s dropped by 2.3%.
Bitcoin investment products were the main drivers, contributing $2.1 billion to the total. The increased demand was linked to rising confidence in Trump’s election lead, along with BTC’s price appreciation. Short-Bitcoin products also attracted $12 million, marking the highest inflow since March.
Ethereum products followed, adding $58 million, signaling broader market enthusiasm influenced by the U.S. election outlook. Altcoins like Solana and Litecoin also experienced inflows of $2.4 million and $1.7 million, respectively. However, multi-asset products, often used for diversified investments, saw $5.3 million in outflows, ending a 17-week streak of positive inflows.
Regional Inflows and Outflows:
While the U.S. saw substantial inflows of $2.3 billion, regions such as Canada, Sweden, and Switzerland recorded net outflows of $19.9 million, $18.2 million, and $14.9 million, respectively, possibly driven by profit-taking activities.
Billionaire Mark Cuban recently criticized Trump’s campaign, arguing that it has become more about Elon Musk than Trump himself. Cuban’s remarks highlight Musk’s growing influence, as he is a key supporter of Trump’s 2024 bid.
Cuban also cast doubt on the reliability of Polymarket odds, suggesting that much of the activity on the platform stems from foreign investors rather than Americans. Despite Cuban’s criticism, Musk, who recently mentioned XRP at a rally, remained neutral on its adoption by financial institutions while expressing continued support for the broader crypto market.
