Could a Trump Victory Boost Bitcoin ETF Investments?
[17/10/2024]
Key Points
Bitcoin ETFs are experiencing significant inflows, indicating a positive market trend.
Political shifts, particularly potential Republican wins, are driving digital asset inflows.
Bitcoin [BTC] ETFs have seen a surge in inflows amid the wider market’s recovery, a trend that suggests a positive market sentiment.
Bitcoin ETF Update
Farside Investors reported that Bitcoin ETFs received $371 million in inflows on October 15. BlackRock's IBIT was the largest inflow with $288.8 million, followed by Fidelity's FBTC with $35 million. Ark 21Shares' ARK ETF and Grayscale's GBTC also reported strong inflows. It is worth noting that no Bitcoin ETF has reported any outflows, which further reinforces the growing interest in Bitcoin-based investment vehicles.A day earlier, Bitcoin ETFs recorded their highest daily net inflows since June, amounting to $555.9 million.
Political Shifts and Crypto
The recent report from CoinShares highlighted a significant increase in digital asset inflows , amounting to millions of dollars. This change is attributed to the growing interest of investors in a possible Republican victory in the upcoming elections. The report suggests that investors' decisions are influenced by the upcoming US elections rather than by monetary policy. CoinShares analysis found that recent flows are driven more by political developments than economic indicators.The company noted that stronger economic data forecasts had minimal impact on the earlier capital halt. The increase in inflows came after the recent American one. Vice presidential debate, in which the polls' momentum favored the Republicans, who were seen as more favorable to digital assets. Nate Geraci, president of the ETF Store, supported this noting that the U.S. ETF's results elections could significantly impact the future of the digital assets industry. As the Republican candidate, Trump is gaining traction on Polymarket, suggesting that the final stretch of the election could bring pivotal developments for the crypto sector.