The Trump Effect Drives Crypto Investments To Historic Highs

The crypto markets are experiencing a massive influx of capital in October, with $3.4 billion in investments, including $900 million just last week. This spectacular rise occurs in a particular American political context, where favorable polls for the Republicans boost the confidence of institutional investors.

A record October for investments

Major asset managers like BlackRock and Fidelity have seen massive inflows into their crypto funds during the last week of October.

According to the latest CoinShares report, investment products in digital assets attracted an additional $901 million, bringing the monthly total to $3.36 billion. This performance accounts for 12% of assets under management and makes October 2024 the fourth most significant month in history in terms of capital inflows.

The Bitcoin largely dominates these investments with $920 million in net weekly inflows. BlackRock’s IBIT has stood out particularly, leading the American Bitcoin ETFs that total nearly a billion dollars in net inflows. This momentum has propelled the price of Bitcoin to $68,554, representing a 62.2% increase since the beginning of the year.

The Republican effect on crypto markets

James Butterfill, head of research at CoinShares, draws a direct link between this increase in investments and the American political context. “The current flows are significantly influenced by the political dynamics in the United States, with the recent capital inflows coinciding with the Republicans’ rise in polls,” he analyzes.

Data from the Polymarket platform reveals that the pro-crypto Republican candidate now leads in six key states, with an 84% chance of obtaining a Republican Senate. This prospect of a potentially crypto-friendly administration boosts the confidence of institutional investors.

This optimism is also reflected in the annual figures, with inflows totaling $27 billion since January, shattering the previous record of $10.5 billion set in 2021. This trend marks a major turning point in institutional adoption of cryptos, now regarded as a strategic asset class in an uncertain political context.