CoinShares Bitcoin ETF attracts billions of dollars as Trumps optimism rises

CoinDesk Report:
Bitcoin
According to the weekly data released on Monday, the prices of other cryptocurrencies also rose after investors heavily invested in digital asset funds last week.
Data from European asset management company CoinShares shows that such tools received the highest inflows since July: reaching $2.2 billion last week.
CoinShares stated that most of the funds came from US investors seeking to invest in Bitcoin, with inflows worth $2.13 billion last week.
According to a report on Monday, the reason is that investors are increasingly optimistic that former President Donald Trump will win next month’s election. This business tycoon and Republican presidential candidate
is more supportive of cryptocurrencies
than Democratic candidate Kamala Harris, who has performed well in conveying information.
The report stated, “We believe that this new optimism stems from people’s increasing expectations of Republican victory in the upcoming US election, as it is widely believed that Republicans are more supportive of digital assets.”
Trump is now leading Harris on popular cryptocurrency prediction platform Polymarket, with a lead of 62% to 38%. Meanwhile, traditional national polls, such as the one conducted by ABC/Ipsos last week, showed that Harris is still the most popular candidate, but Trump is closer than a few weeks ago.
The new Bitcoin Exchange Traded Fund (ETF), approved in January this year, allows US investors to easily and regulatedly access cryptocurrencies. These funds have achieved great success,
attracting
over $20 billion in just 9 months.
Last week, BlackRock’s iShares Bitcoin Trust
brought in
over $1 billion in cash from investors hoping to invest in the largest cryptocurrency by market value, accounting for over half of the total inflows of such US funds this week.
Earlier this fall, investors slowed down their pace of cash investment in ETFs, uncertain about how the Federal Reserve would respond to historically high interest rates. However, the central bank
swiftly
lowered interest rates last month, sparking renewed interest in assets like Bitcoin.
Combined with Trump’s commitment to the cryptocurrency industry, this has led to increased optimism about cryptocurrencies. The former president
has
stamped himself as the candidate friendly to cryptocurrencies ahead of next month’s election, telling Bitcoin enthusiasts that all future digital currencies should be minted in the United States, and even
launching
his own decentralized finance (DeFi) project.
The
Bitcoin price
is currently at $67,160, down 2% in the past 24 hours,
setting a new 24-hour high of $69,431
on Sunday. It reached a historical high of $73,737 in March, and Sunday’s peak was the closest to that point since June.
Editor:
Andrew Hayward