Crypto investment products have seen heavy inflows in the past couple of weeks, driven by renewed institutional interest and a friendly political climate. According to a report on Digital Asset Fund Flows, Bitcoin funds accounted for most of the $920 million injected into these crypto products.

If this trend continues, October will be among the strongest months for crypto product inflows thus far and evidence of renewed confidence by investors. For the third consecutive week, Bitcoin funds dominated crypto investment products.

This suggests that individual and institutional investors consider it their favorite virtual asset. Moreover, the forthcoming US presidential election is another reason for this increased fund injection into Bitcoin products.

US Politics and Crypto Market Trends

The US has commanded the lion’s share of crypto investment flows, accounting for around $906 million of total inflows. The expectations surrounding the imminent elections have also added to this momentum.

Based on all indications, the election outcome will further influence crypto regulatory policies. Should former US President Donald Trump win, many analysts predict that there won’t be any adverse regulatory changes to the crypto industry.

With the election odds favoring him already, many crypto market participants are already in a celebratory mood.

Bitcoin’s Dominance Among Crypto Investment Products

Compared to other crypto investment products, especially Ether funds, net flows into Bitcoin products have been positive over the past few weeks. For instance, spot Bitcoin ETFs in the US have recorded a cumulative total net inflow of $22.41B since their launch.

In contrast, spot Ether ETFs in the US have a cumulative total net outflow of $505.58M since launch. This trend proves the continued investor interest in the leading cryptocurrency.

Meanwhile, short-Bitcoin products, typically used by investors to bet against the cryptocurrency, reported minor outflows of $1.3 million versus inflows of $12 million the previous week. This shift reflects the optimism over Bitcoin’s present trajectory and expectation of a higher price over the near term.

Also, Bitcoin’s price action in recent weeks has attracted many financial institutions and retail investors who have added BTC to their investment portfolios for the long term. Thus, Bitcoin’s dominance over other digital assets will continue to soar.

Crypto Investment Products and Regional Dynamics

By regional performance, the US tops inflows into crypto products, possibly due to the increasing political support for Bitcoin and other digital assets. Nevertheless, other countries have also seen notable crypto investment activities, particularly among the youths.

For instance, crypto investments in Indonesia are on the rise. According to a study by Bappebti, a regulator of commodities trading in Indonesia, over 60% of crypto investors are below the age of 30.

This stat is similar to what’s obtainable in other parts of the world — younger generations (particularly the millennials and Gen Z) are displaying greater interest in investing in digital assets over the long term. A study conducted by Bitget in 2023 revealed that roughly 46% of millennials own crypto across major economies, with the data noting that such interest keeps growing.

This strong appetite for digital assets among the young generation indicates a possible turning point in the investment landscape, where crypto assets will be prominent in most diversified investment portfolios.

Indonesia’s Crypto Ecosystem

With the establishment of the crypto market in Indonesia, so are the challenges it faces from a number of different regulatory frameworks across regions. Indonesia views crypto as a commodity.

Despite allowing its crypto market to thrive, many crypto players in Indonesia believe there are still gaps in the nation’s crypto regulatory framework. For instance, the authorities consider crypto a commodity, but the country’s primary regulator (Bappebti) has introduced a dual tax system, which includes a 0.11% value-added tax and 0.1% capital gains tax.

In the US, the regulatory environment for crypto is still uncertain. There are still ongoing discussions about frameworks that could provide more clarity to investors.