Media outlet CNBC reports that global investors are turning to Bitcoin, the pioneering cryptocurrency, as the US presidential election fever intensifies.
In a Friday publication, CNBC reported increasing traction among investors towards cryptocurrencies, particularly Bitcoin. The media outlet noted that the firstborn of the nascent sector, which has been one of the hot topics in months leading up to the election, has seen millions of dollars poured into it.
Investors Show Appetite Towards Bitcoin ETFs
As election proceedings draw nearer, US investors have shown a high appetite towards Bitcoin exchange-traded funds (ETFs), a traditional financial vehicle that provides alternative exposure to the largest cryptocurrency by market cap.
The surging interest has recently been evident in the US ETFsâ incessant inflows. In the past three weeks, the Bitcoin investment vehicles have recorded a net inflow of $5.6 billion, as flows reach their highest levels since February.
Notably, the BlackRock iShare Bitcoin Trust (IBIT) has seen the highest inflow since the renewed traction. The asset manager has netted $4.4 billion in the past three weeks, accounting for 79% of all the Bitcoin acquired among US issuers.
Trump Trade Sentiment Driving Traction
The report tied the growing inflows to Wall Streetâs bet that the sector will flourish following Republican nominee Donald Trumpâs win amid his increasing odds of victory. Analysts have called cryptocurrency the âTrump trade,â with several assertions of a price upsurge if the pro-crypto candidate wins on November 5.
Trump has displayed a friendly stance towards digital assets, mentioning that he wants to make America the crypto capital of the world and intends to store Bitcoin as a strategic reserve asset. With his odds of victory surging extensively, investors are all looking to position themselves for maximum gains in assets he has shown interest in.
Notably, the increased traction has impacted Bitcoinâs price, bringing the premier crypto asset close to its all-time high. Bitcoin traded above $73,000 on Tuesday but failed to hold the price mark, falling to $69,672 at the time of writing.
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