- Crypto investors put $41.9 million into Bitcoin-related funds last week, reversing outflows from the previous week, which CoinShares attributes to polls showing narrowing odds between the two U.S. presidential candidates.
- The report suggests investors believe a Republican presidency would be more supportive of digital assets like Bitcoin, with Donald Trump branding himself as the “crypto candidate.”
- Bitcoin’s price rose above $66,000 for the first time this month, which CoinShares linked to the shift in polling towards Republicans and Trump’s perceived crypto-friendly stance.
Bitcoin ETF investment has increased as Donald Trump‘s odds of winning the upcoming US presidential election have improved, according to a report by CoinShares. The price of Bitcoin has also risen as a result.
Trump Seen as More Crypto-Friendly
According to CoinShares, investors believe a Republican president would be more supportive of digital assets, leading to increased inflows into crypto funds when Trump’s polling improved after the recent vice presidential debate. The Republican candidate has branded himself as crypto-friendly, supporting domestic Bitcoin mining and launching a DeFi project.
Bitcoin Fund Inflows
Investors put $407 million total into crypto funds last week, with most of the focus on Bitcoin. This reversed previous weeks of outflows. Strong economic data did not stem the outflows, but improved polls for Trump led to an immediate boost in crypto investment funds.
Bitcoin Price Rises
As a result of the increased interest and inflows into Bitcoin funds, the price of Bitcoin rose by nearly 3% over the past week to over $65,000. It reached above $66,000 on Monday for the first time this month.
Conclusion
CoinShares believes investors are now more focused on the outcome of the upcoming presidential election than on economic data. The perceived greater crypto-friendliness of the Republican candidate has led to increased investment in Bitcoin funds and a corresponding rise in the Bitcoin price. This demonstrates the potential impact politics can have on the cryptocurrency market.
