Altcoin
Bitcoin, Solana, & Litecoin Dominate $901M Crypto Inflows Before US Elections
The digital asset inflows last week reached a staggering $901 million with Bitcoin dominating a lion’s share of the total flows. BTC has turned out to be investors’ favorite this month in October ahead of the US Elections in November. Ethereum (ETH), on the other hand, has seen outflows, while altcoins like Solana and Litecoin grab the limelight.
Bitcoin Dominates Crypto Market Inflows
As per the latest report from CoinShares, digital asset investment products saw total inflows of $901 million with October’s inflows making 12% of total assets under management. This represents the fourth-largest monthly inflow on record. On the other hand, year-to-date inflows have reached $27 billion, nearly tripling the 2021 record of $10.5 billion.
As said, Bitcoin dominated the most part of it with the BTC investment products seeing a staggering $920 million in inflows. This shows that big players seem to buying the Bitcoin dips, during the BTC price drop to $65,000 last week. On the other hand, the short Bitcoin products saw minor outflows of $1.3 million. Vetle Lunde, head of research at K33, said:
“Record year in the making! Net yearly notional flows to BTC investment vehicles have surpassed the 2020 peak. In 2024, Bitcoin investment vehicles globally have seen net yearly inflows of 377,000 BTC, surpassing the Grayscale-led 2020 record of 373,000 BTC”.
The spot Bitcoin ETFs contributed a majority of inflows last week. In just five days between October 21 to October 25, the spot Bitcoin ETFs clocked inflows of $998 million. Notably, the BlackRock ETF (IBIT) saw a significant net inflow of $1.15 billion, while the ARK 21Shares Bitcoin ETF (ARKB) faced a net outflow of $206 million.
The spot BTC ETFs are close to hitting another milestone of holding 1 million Bitcoin i.e. nearly 5% of the total BTC supply. This is massive considering the fact that this investment product reached this milestone in just 10 months of launch.
Spot bitcoin ETFs now about 23,000 away from holding 1,000,000 btc…
Or almost 5% of btc final total supply.
via @apollosats pic.twitter.com/QnrOPr6vPX
— Nate Geraci (@NateGeraci) October 28, 2024
Solana and Litecoin Grab Limelight Before US Elections
The altcoins space is seeing some mixed behavior where Ethereum (ETH) takes a backseat as traders no longer see it as a Trump-trade before the US elections. Despite the overall positive sentiment in the market, Ethereum experienced the largest outflows among all assets last week, totaling $35 million.
In contrast, Solana reported the second-largest inflows, attracting $10.8 million during the same period. Several market analysts expect the Solana price rally to continue till $300.
Furthermore, Bitcoin competitor Litecoin has been seeing renewed market activity in the last week. Currently, the Litecoin price flirts around $70, eyeing a potential rally to $100.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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