Bitcoin Exchange-Traded Funds (ETFs) in the United States have experienced their most significant daily inflow since their inception, amassing a staggering $870 million on a single day. This remarkable influx of investment comes as Bitcoin, the largest cryptocurrency, edges closer to its all-time high of $73,700, a milestone first achieved in March.
Investor sentiment appears to be buoyed by speculation surrounding a potential victory for the Republican candidate, Donald Trump, over Vice President Kamala Harris. Many believe that a Trump win could foster a more favorable environment for the digital asset ecosystem, ultimately benefiting cryptocurrency prices.
Bitcoin ETFs Inflows And Price Rally
According to Bloomberg data, Tuesday’s subscriptions propelled the year-to-date inflows for the collective group of 12 Bitcoin ETFs to exceed $23 billion. Analysts attribute the growing demand for Bitcoin exposure to Trump’s elevated odds in election betting markets.
While Trump leads in prediction markets, polls reveal a closely contested race against Vice President Harris, who has committed to supporting a regulatory framework for the cryptocurrency industry. However, Trump’s approach appears to have resonated more with the crypto community.
Market Speculations and Potential Price Movements
Adding to the speculation, Bitcoin options markets indicate a one-third chance of a price swing exceeding 10% on election day, November 5. This insight comes from Nick Forster, founder of the crypto trading platform Derive.xyz. Such a surge could propel Bitcoin’s price to a new all-time high of $72,900, assuming BTC consolidates above $72,000 in the days leading up to the election.
Forster suggests that such volatility often encourages traders to position themselves for potential market movements, thereby increasing demand for Bitcoin ETFs and contributing to the current price rally observed since the week’s beginning.
Expert Warns Of Potential Selloff
ETF expert Eric Balchunas has also weighed in on the bullish sentiment surrounding Bitcoin ETFs. He noted that these funds are on the verge of reaching 1 million BTC in holdings, possibly as early as today.
In a recent social media post, Balchunas reported that US spot ETFs could surpass 1 million BTC by next Wednesday, potentially surpassing the holdings of Bitcoin’s enigmatic creator, Satoshi Nakamoto, by mid-December. These funds are adding approximately 17,000 BTC each week.
However, following Tuesday’s performance, Balchunas remarked, “We’re going to need to move up our predictions,” highlighting that Bitcoin ETFs had acquired over 12,000 coins in a single day, now holding 996,000 BTC. The expert expressed optimism about the likelihood of breaching the 1 million mark today, stating that the “extraordinary” trading volume from the previous day is likely to translate into significant inflows.
Market Dynamics and Future Projections
While Balchunas remains optimistic, he also cautioned that market conditions can be unpredictable. “Anything can happen,” he warned, referencing the risk of a sudden selloff that could delay reaching the 1 million BTC milestone.
Conversely, if Bitcoin prices continue to rise and a Trump victory boosts market enthusiasm, a fear of missing out (FOMO) could drive even more rapid accumulation, according to the expert’s analysis.
As of the latest data, Bitcoin’s price is trending upward, trading at $72,360, marking an impressive increase of over 8% in the past week.
