Within the current market recovery scenario, Bitcoin exchange-traded funds (ETFs) have been witnessing a surge in popularity, attracting substantial funds – an indication of a positive trend in the market.
Latest Developments in Bitcoin ETFs
Recent data from Farside Investors reveals that Bitcoin ETFs collectively experienced significant inflows amounting to $371 million on October 15.
The leading ETF was BlackRock’s IBIT, attracting $288.8 million, followed by Fidelity’s FBTC with $35 million. Ark 21Shares’ ARK ETF and Grayscale’s GBTC also saw inflows of $14.7 million and $13.4 million, respectively.
While a few ETFs did not witness any inflows, none reported outflows, indicating a growing interest in Bitcoin-based investment avenues.
In a noteworthy development, Bitcoin ETFs saw the highest single-day net inflows since June, totaling $555.9 million, with FBTC leading the surge with inflows of $239.3 million – its highest since June 4. GBTC also saw renewed interest, drawing $37.8 million – its highest since May and the first positive inflows this October.
This surge coincided with Bitcoin trading at $67,823.08, marking a 3.56% increase in a day and a 9.44% gain over the past week, igniting speculations of a potential new all-time high.
Linking Increased Investments to the Election – What’s the Connection?
Interestingly, a recent report by CoinShares pointed out a rise in digital asset inflows totaling $407 million, attributed to the growing interest of investors in anticipation of a potential Republican victory in the elections.
This influx of capital represents a heightened enthusiasm for cryptocurrencies, driven by the belief that a Republican-led administration could introduce favorable regulatory changes in the industry.
CoinShares’ report highlighted,
“Investments in digital assets saw a surge of US$407m, as investor decisions seem to be more influenced by the upcoming US elections than by monetary policy forecasts.”
The firm supported its analysis by emphasizing that recent inflows closely align with political developments rather than economic indicators.
Moreover, despite better-than-expected economic data, previous outflows were unaffected, with the recent flow of funds coinciding with the U.S. Vice Presidential debate. Post this event, there was a shift in polling momentum towards Republicans, who are perceived as more supportive of digital asset ventures.
Insights from Industry Executives
Nate Geraci, President of ETF Store, echoed this sentiment, suggesting that the outcome of the U.S. elections could significantly impact the future of the digital assets sector.
Geraci remarked,
“46% of respondents believe that crypto & blockchain represent the future of finance. 34% stated that they were evaluating candidates’ positions on crypto before casting their vote.”
He further noted,
“This is becoming a mainstream issue.”
Geraci drew attention to insights from a recent poll by Grayscale, exploring the relationship between cryptocurrency and the upcoming elections.
With Trump gathering momentum as the Republican nominee on Polymarket, the final phase of the elections poses crucial implications for the digital assets sector.