Investor interest in Bitcoin-related ETFs is on the rise as Donald Trump’s election odds improve, according to a new report from European asset manager CoinShares. Crypto funds attracted $419 million in inflows last week, reversing the previous week’s negative trend, as investors responded to shifting political dynamics.
CoinShares attributes this surge to growing optimism among crypto investors about the possibility of a Republican victory in the upcoming U.S. presidential election. The report noted that investors seem more focused on the election outcome than economic indicators, with tighter polling data between Trump and his opponent contributing to the increased interest in Bitcoin ETFs.
Donald Trump, who has presented himself as a pro-crypto advocate, has outlined plans to back the U.S. crypto industry by encouraging domestic Bitcoin production and has previous involvement with NFT projects and decentralized finance (DeFi) initiatives.
Bitcoin’s price has reacted positively, climbing to $65,642, representing a near 3% increase over the past week. It briefly surpassed the $66,000 mark for the first time this month. The focus has been primarily on Bitcoin-related funds, while investors pulled capital from Ethereum and short Bitcoin investment vehicles.
CoinShares highlighted that Bitcoin ETFs, especially those approved by the SEC and backed by major institutions like BlackRock and Fidelity, have played a pivotal role in driving this renewed investment interest. Both presidential candidates have recently voiced crypto-friendly stances, but Vice President Kamala Harris has only recently endorsed plans to regulate the industry in a way that protects minority investors.