Summary:
$419 million invested in Bitcoin-related funds last week, reversing negative trends.
Donald Trump seen as the more crypto-friendly candidate, boosting investor confidence.
Bitcoin price rises to $65,642, marking a nearly 3% increase in a week.
Newly-approved ETFs from Wall Street giants are significantly impacting Bitcoin investments.
Harris supports a regulatory framework for cryptocurrency, focusing on investor protection.
Crypto Investment Surge Amid Political Shifts
Crypto investors are feeling more bullish, with a staggering $419 million directed towards Bitcoin-related funds last week. This marks a significant turnaround from the previous week's negative outflows. According to CoinShares, the reason behind this surge is the improving election odds for Donald Trump, the self-proclaimed crypto candidate.
CoinShares reported that investors are now prioritizing the upcoming presidential election over economic data. With polls showing a tighter race between candidates, this has positively influenced crypto ETF investments.
Trump: The Crypto-Friendly Candidate
Donald Trump has branded himself as the more crypto-friendly candidate, advocating for Bitcoin to be produced solely in the U.S. He has a colorful history with NFT collectibles and is even launching a DeFi project.
“Stronger-than-expected economic data had little impact on stemming outflows, whereas the recent U.S. vice presidential debate and a shift in polling towards the Republicans—perceived as more supportive of digital assets—led to an immediate boost in inflows and prices,” CoinShares explained.
Bitcoin Price Surge
As a consequence of these developments, the price of Bitcoin has risen, now trading at $65,642—a nearly 3% increase over the past week. Bitcoin even surpassed the $66,000 mark earlier this month.
Despite a total of $407 million invested in digital currency funds, there was a notable withdrawal from Ethereum and short Bitcoin investment products. CoinShares highlighted that the primary focus last week was on Bitcoin-related investment funds.
Impact of Newly-Approved ETFs
Globally, investors have various options for cryptocurrency exposure, but the newly-approved exchange-traded funds (ETFs) on stock exchanges are making the most significant impact. The Securities and Exchange Commission approved these funds from Wall Street giants like BlackRock and Fidelity earlier this year.
Both major candidates in the election have adopted a crypto-friendly stance, although Democratic candidate Kamala Harris was late to reveal her positive plans for the industry. Recently, Harris expressed her support for a regulatory framework for cryptocurrency, emphasizing protection for Black investors in digital assets.
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