The former President has publicly endorsed Bitcoin, while Vice President Harris has expressed caution
Bitcoin has enjoyed a substantial uptick in demand this week as investors weigh in the prospect of a Donald Trump victory in the forthcoming U.S. Presidential election.
BlackRock’s Bitcoin ETF recorded an all-time daily inflow record of $872 million on Wednesday, indicating strong interest in digital assets amid political uncertainty.
Bloomberg ETF analyst Eric Balchunas Tweeted that BlackRock’s ETF is “gobbling up BTC like Pac-Man”, reflecting election-driven demand for Bitcoin.
Ok we gonna need to move up our predictions as yest alone the btc ETFs gobbled up over 12k coins like Pac-Man on a bender, now hold 996k btc- good chance to pass 1 million today (as the ridic volume yest likely to translate to big flows tonight). Legit shot to get to Satoshi by… https://t.co/Ua9GzhsBwE pic.twitter.com/84bBprhi6I
— Eric Balchunas (@EricBalchunas) October 30, 2024
The price of Bitcoin also neared an all-time high this week, surpassing the $73,000 mark on Tuesday.
However, the asset has since experienced a slight correction, hovering just above $70,000 on Friday.
The uptick in appetite for Bitcoin points to what analysts call a “Trump trade”, as the former president, who has publicly declared his support for crypto coins like Bitcoin, holds an edge in betting markets ahead of the election.
Trump’s opponent, Vice President Kamala Harris, has called for tighter crypto regulations to enhance industry transparency.
The iShares Bitcoin Trust has experienced one of the highest ETF subscription rates globally in 2024, driven by political speculation and recent gains in Bitcoin’s price.
“There’s a lot of demand coming into these ETFs, for sure,” said James Seyffart, an ETF analyst at Bloomberg Intelligence, in a Bloomberg Television interview. Seyffart attributed the trend to Bitcoin’s recent momentum and Trump’s improving odds.
Bitcoin momentum builds amid election speculation
Bitcoin’s recent rally, with a 13% gain in October alone, has positioned the cryptocurrency close to its all-time high of $73,798.
Interest in crypto-related ETFs is also building as candidates offer diverging views on digital assets.
Former President Trump has promised to transform the U.S. into a global crypto leader. At the Bitcoin 2024 conference in Nashville earlier this year, Trump made the case for a national crypto stockpile and urged investors to “never sell your Bitcoin”.
The increasing retail and institutional interest in Bitcoin ETFs has fueled holdings worth approximately $66 billion, suggesting a potential Bitcoin supply squeeze that could further impact prices.
