Cryptocurrency investment products have seen their largest inflows since July, fueled by optimism surrounding the upcoming United States elections. According to a recent report from CoinShares, a crypto investment firm, these inflows reached a significant $2.2 billion during the week of October 12–18.

Optimism Over Republican Election Victory

CoinShares attributes this surge in investments to growing expectations of a potential Republican win in the US elections. Historically, Republican leadership has been viewed as more favorable toward digital assets, which may explain the renewed investor confidence.

James Butterfill, CoinShares’ head of research, commented on the trend, saying, “We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming US elections.”

The United States dominated crypto investments during this period, recording $2.3 billion in inflows. While the US market saw a positive spike, other regions such as Canada and Sweden experienced outflows, with investors withdrawing $19.9 million and $18.2 million, respectively. Australia was the only other region to report positive inflows, contributing $1.4 million.

Bitcoin Dominates with $2.13 Billion Inflows

Bitcoin emerged as the biggest winner, securing a massive $2.13 billion in investments. A significant portion of this came from BlackRock’s iShares Bitcoin ETF, which alone saw $1.19 billion in inflows.

Other cryptocurrencies, like Ether (ETH), also experienced positive movement, with $58 million in inflows. However, multi-asset crypto products recorded a loss, breaking a 17-week streak of consistent inflows.

The optimism surrounding the US election has led to price momentum and increased trading volumes in digital assets. Trading volumes for crypto investment products surged by 30%, and overall assets under management are now approaching $100 billion.

CoinShares’ report highlights that the recent surge aligns with the seasonal “Uptober” trend, where October typically brings positive performance in the crypto market.

This influx of investments signals strong confidence in the market, particularly as the US election draws closer, with investors expecting favorable outcomes for digital assets.