Cryptocurrency investors are clearly becoming more bullish. Last week, it poured $419 million into Bitcoin-related funds, marking a reversal from the previous week's negative crypto fund flows. European asset management firm CoinShares says that's because it believes a Republican is now slightly more likely than before to take the White House.
CoinShares said in a report on Monday that investors are now more concerned with who the next president will be than economic indicators. And with polls showing narrower odds between the two candidates, the firm believes that is having an impact on crypto ETF investing.
Former President Donald Trump, the Republican candidate for next month's election, is touting himself as a more crypto-friendly candidate. He told Bitcoiners that he wants the asset to be produced exclusively in the United States, has a colorful history with NFT collectibles, and even launched a DeFi project.
“This trend is evident in the fact that stronger-than-expected economic indicators had little impact on stemming the outflow, while the recent US vice presidential debate and subsequent changes in public opinion polling have “The perceived Republican support will lead to an immediate increase in inflows and prices,” the report said.
As a result, the price of Bitcoin is rising, with the largest virtual coin currently trading at $65,642 per coin, up nearly 3% in seven days, according to CoinGecko. Bitcoin surpassed the $66,000 level for the first time this month early Monday.
Investors have invested a total of $407 million into digital currency funds, according to CoinShares. Investors withdrew money from products offering exposure to Ethereum and shorted Bitcoin investment vehicles, funds that can bet on a decline in Bitcoin prices.
According to the company, most of the attention last week was on Bitcoin-related investment funds.
There are funds all over the world that can offer investors exposure to cryptocurrencies, but in the case of Bitcoin, the biggest impact will be on newly authorized exchange-traded funds (ETFs) that trade on stock exchanges. In January, the Securities and Exchange Commission approved funds released by Wall Street giants like BlackRock and Fidelity.
Both candidates have a positive outlook for cryptocurrencies ahead of the election, but Democrat Kamala Harris has been slow to acknowledge her positive plans for the industry.
But on Monday, the current vice president said She said she supports “a regulatory framework for cryptocurrencies and other digital assets so that black men who invest in and own these assets are protected.”
Edited by Andrew Hayward
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