- The Bitcoin ETF has witnessed record inflows amid the general market recovery, instilling confidence in investors.
- The political shift is driving the growth of digital assets, with the Republican party seen as more supportive of cryptocurrencies.
Amid the broader market recovery, Bitcoin ETF [BTC] funds are gradually establishing their position with significant inflows - a signal of the positive growth trend in the market.
Update on Bitcoin ETF
According to statistics from Farside Investors, on October 15, Bitcoin ETF funds recorded a total inflow of $371 million.
Leading the pack is BlackRock's IBIT with $288.8 million, followed by Fidelity's FBTC with $35 million. Additionally, Ark 21Shares' ARK ETF reported $14.7 million, while Grayscale's GBTC also saw an inflow of $13.4 million.
While some ETF funds did not record inflows, none reported outflows. This further reinforces the growing interest in Bitcoin-based investment vehicles.
In fact, just a day earlier, Bitcoin ETF funds recorded the largest single-day net inflow since June - totaling $555.9 million.
Leading this trend was FBTC with a $239.3 million inflow, the highest since June 4. Additionally, GBTC also saw renewed interest with $37.8 million - the highest since May and the first positive inflow in October.
This coincides with Bitcoin's trading price reaching $67,823.08 on exchanges, after a 3.56% increase in 24 hours and a 9.44% gain over the past seven days. As expected, this has sparked expectations that cryptocurrencies may be heading towards a new all-time high.
CoinShares links this to the election - But why?
Interestingly, the latest report from CoinShares has also highlighted a notable increase in inflows into digital assets, totaling $407 million - a shift attributed to the growing investor interest tied to the Republican party's potential victory.
The recent capital influx is seen as a sign of the increasing concern for cryptocurrencies, driven by the expectation that a GOP-led administration could bring about favorable regulatory changes for the industry.
The report notes,
"Digital asset investment products saw inflows of $407 million, with investor decisions likely more influenced by the upcoming U.S. elections than monetary policy prospects."
The company has backed its analysis by pointing out that the recent inflows closely align with political developments, rather than economic indicators.
Notably, stronger-than-expected economic data had little impact in preventing the previous outflows.
In fact, according to CoinShares, this latest inflow surge has occurred in the wake of the recent U.S. Vice Presidential debate. Subsequently, the polling momentum has shifted towards the Republican party, which is perceived as more supportive of digital asset initiatives.
Executives weigh in...
ETF Store's Chairman, Nate Geraci, echoes this view, emphasizing that the outcome of the U.S. elections could have a significant impact on the future of the digital asset industry.
He stated,
"46% agree that cryptocurrencies and blockchain are the future of finance. 34% said they have considered candidates' crypto asset positions before voting."
Geraci added,
"It's starting to become a mainstream issue."
Here, Geraci has highlighted insights from a recent survey conducted for Grayscale, a survey exploring the interaction between cryptocurrencies and the upcoming elections.
With Trump emerging as a Republican frontrunner on Polymarket, the final stretch promises significant developments for the industry.
