According to a recent report by the digital asset investment and management firm CoinShares, investors poured $407m into digital asset products, likely swayed by the US election dynamics.

The report read, “Digital asset investment products saw inflows of US$407m, as the upcoming US elections have more influenced investor decisions than by monetary policy outlooks.”

Bitcoin dominated the digital asset products, securing $419m in weekly inflows, far surpassing the next closest, Multi-asset, which drew $1.5m. On the other hand, short-Bitcoin products experienced $6.3m outflows, while Ethereum continued its downward trend with $9.8m outflows.

BlackRock’s iShares secured the highest ETF inflows at $158m, with Fidelity ETFs and Bitwise following at $138m and $36m, respectively.

US Election Fever Fuels Digital Asset Investment

According to the CoinShares reports, the US election is causing a stir in the digital asset market, given the recent surge of $407 million in inflows. America dominated recent digital asset inflows, contributing $406 million, while Canada was the only other notable contributor, adding $4.8 million.

The shifting political landscape greatly influences the large influx, particularly the growing likelihood of a Republican victory. Investors seem to believe that Republicans are more crypto-friendly than the Democrats, fueling this influx of capital into digital assets like Bitcoin.

“This trend is evident in the fact that stronger-than-expected economic data had little impact on stemming outflows, whereas the recent US vice presidential debate and a subsequent shift in polling towards the Republicans, perceived as more supportive of digital assets, led to an immediate boost in inflows and prices.”

Investors view Republicans as crypto-friendly primarily due to Presidential candidate Donald Trump’s vocal support for the industry. 

Earlier this year, Trump’s presidential campaign took a groundbreaking step by accepting cryptocurrency donations, attracting significant contributions from prominent industry leaders, including Tyler and Cameron Winklevoss, founders of New York-based cryptocurrency exchange and custodian Gemini, and Jesse Powell, co-founder of Kraken, who donated $1 million in Ethereum.

In July, at the Bitcoin Conference in Nashville, Tennessee, Trump declared that he’ll fire SEC Chairman Gary Gensler and appoint a new leader as soon as he takes office, most likely to create a more relaxed regulatory environment for the rapidly growing cryptocurrency industry.

Recently, the Republican candidate launched crypto-focused World Liberty Financial with its governance token, WLFI.