Global crypto funds hit all-time high of $116 billion assets under management amid post-US election rally: CoinShares

Global crypto funds run by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares registered a fifth consecutive week of net inflows, adding $1.98 billion, according to CoinShares, bringing the year-to-date figure to a new record $31.3 billion. 

Combined with a price surge following Donald Trump’s victory in the U.S. presidential election, assets under management at the funds have climbed to a new all-time high of $116 billion, CoinShares Head of Research James Butterfill noted in a Monday report. Weekly trading volumes also surged to $20 billion — the highest since April, Butterfill added.

Weekly crypto asset flows. Images: CoinShares.

Unsurprisingly, U.S.-based funds dominated, accounting for $1.95 billion of the net weekly inflows, while Switzerland and Germany-based crypto investment products also added $23 million and $20 million, respectively.

Bitcoin-based products led on the asset side, registering $1.8 billion worth of net inflows globally last week and $9 billion since the U.S. Federal Reserve first began cutting interest rates this cycle in September, Butterfill said. The U.S. spot Bitcoin exchange-traded funds notched up net weekly inflows of $1.6 billion — including the largest ever daily net inflows of nearly $1.4 billion into the funds on Thursday alone.

Meanwhile, Ethereum-based investment products also witnessed net inflows of $157 million globally for the week — the largest since the spot Ethereum exchange-traded funds began trading in the U.S. in July.

Solana, Uniswap and Tron-based funds also registered modest inflows and blockchain equities added $61 million. The net weekly flow of U.S. dollars into the cryptocurrency market as a whole was around $6.3 billion, including $4.5 billion into fiat-backed stablecoins, according to SoSoValue.

Post-US election rally

Butterfill said a supportive macro environment and “seismic shifts” in the U.S. political system are “the likely reason for such supportive investor sentiment.”

Trump laid out a variety of pro-crypto policies during the campaign, including establishing a national bitcoin stockpile and turning the U.S. into a bitcoin mining “powerhouse.” Additionally, Trump has promised to “end the war on crypto regulation" and replace the crypto-skeptical U.S. Securities and Exchange Commission Chair Gary Gensler. 

Earlier on Monday, analysts at Bernstein urged investors who had refrained from allocating to the crypto industry due to regulatory concerns to “invert their mental model” following the election result. “Don’t fight this,” the analysts led by Gautam Chhugani told clients in an explosively bullish note, “Welcome to the crypto bull market — buy everything you can,” he said.

Bitcoin is currently trading for $81,880, according to The Block’s Bitcoin Price Page, up 2.6% over the past 24 hours, 20% in the last week and 94% year-to-date. The GMCI 30 index, which represents a selection of the top 30 cryptocurrencies, is up 1% over the past day to 152.13, gaining 27% in the last week and around 53% in 2024.