The price of Bitcoin and other cryptocurrencies rose late last week as investors poured money into digital asset funds, according to full-week data released Monday.
These vehicles have seen their highest inflows since July, with a whopping $2.2 billion flowing into them over the past week, according to data from European asset management firm CoinShares.
CoinShares said most of the money came from U.S. investors seeking exposure to Bitcoin, with $2.13 billion worth of inflows last week.
That’s because investors are increasingly bullish that former President Donald Trump will win next month’s election, according to a report on Monday. The business mogul and Republican candidate for the White House has been much more pro-crypto in his messaging than Democratic candidate Kamala Harris.
“We believe this new optimism stems from increased expectations that the Republican Party will win the next US election, as it is generally seen as more supportive of digital assets.” says the report.
Trump holds a 62% to 38% lead over Harris on popular cryptocurrency betting platform Polymarket. Meanwhile, a traditional national poll of voters released last week by ABC/Ipsos shows that Harris remains the favorite, but that Trump is closer than he was a few weeks ago.
A new Bitcoin exchange-traded fund (ETF) approved in January will give U.S. investors easier access to the regulated cryptocurrency. The fund was a huge success, raising more than $20 billion in just nine months.
Last week, BlackRock’s iShares Bitcoin Trust brought in more than $1 billion in cash from investors seeking exposure to the largest digital coin by market capitalization, more than half of all inflows into such U.S. funds this week. occupied.
Investors held back on putting cash into ETFs earlier this fall because it was unclear how the Federal Reserve would respond to historically high interest rates. But the central bank decided to cut interest rates last month, and investors are rekindling their appetite for “risk-on” assets like Bitcoin.
Coupled with President Trump’s pledge to the cryptocurrency industry, his bullish stance on cryptocurrencies is becoming stronger. The former president has touted himself as a crypto-friendly candidate ahead of next month’s election, telling Bitcoiners that all future digital coins should be minted in the United States and even promoting his own decentralized finance (DeFi) project has also been launched.
Bitcoin’s price is currently $67,160, down 2% in the past 24 hours after hitting a 24-hour high of $69,431 on Sunday. It hit an all-time high of $73,737 in March, and Sunday’s high was the closest it has returned to around that point since June.
Edited by Andrew Hayward
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