Will Donald Trump winning again be bullish for Bitcoin ETF inflows?

• Bitcoin ETFs saw record inflows amid the broader market’s recovery, signaling investor optimism
• Political shifts are driving digital asset inflows, with Republicans seen as being pro-crypto

Amid a broader market recovery, Bitcoin [BTC] ETFs have been gaining traction lately with significant inflows – A sign of a positive market trend.

Bitcoin ETF update

According to Farside Investors, Bitcoin ETFs recorded collective inflows of $371 million on 15 October.

Leading the pack was BlackRock’s IBIT with $288.8 million, followed by Fidelity’s FBTC at $35 million. Additionally, Ark 21Shares’ ARK ETF reported figures of $14.7 million while finally, Grayscale’s GBTC saw inflows of $13.4 million.

While some ETFs saw no inflows, none reported outflows. This can be interpreted as reinforcing the growing interest in Bitcoin-based investment vehicles.

In fact, just a day ago, Bitcoin ETFs recorded their highest single-day net inflows since June – A combined value of $555.9 million.

Leading this momentum was FBTC which reported $239.3 million inflows – Its largest since 4 June. Additionally, GBTC also saw renewed interest with figures of $37.8 million – Its highest since May and marking its first positive inflows in October.  

This coincided with Bitcoin trading at $67,823.08 on the charts, following a 3.56% hike in 24 hours and gains of 9.44% over seven days. As expected, this has fueled speculation that the crypto may be gearing up for another all-time high.

CoinShares links this to election – But why?

Interestingly, CoinShares’ latest report also highlighted a notable uptick in digital asset inflows, totaling $407 million—A shift attributed to growing investor interest tied to a potential Republican win.

This recent wave of capital is a sign of heightened interest in crypto, one driven by expectations that a GOP-led administration could bring favorable regulatory shifts to the industry. 

The report noted, 

“Digital asset investment products saw inflows of US$407m, as investor decisions have likely been more influenced by the upcoming US elections than by monetary policy outlooks.”

The firm supported its analysis by pointing out that recent inflows align closely with political developments, rather than economic indicators.

Notably, stronger-than-anticipated economic data had minimal effect on halting prior outflows.

In fact, according to CoinShares, this uptick in inflows was followed by the recent U.S. Vice Presidential debate. Following the same, polling momentum shifted toward Republicans, seen as being more supportive of digital asset initiatives.

Execs weigh in…

ETF Store President Nate Geraci supported this perspective, highlighting that the results of the U.S. elections could have a major impact on the digital assets industry’s future.

He said, 

“46% agree that crypto & blockchain are future of finance. 34% said they were considering candidates’ crypto positions before voting.” 

Source: Nate Geraci/X

Geraci added, 

“Becoming mainstream issue.” 

Source: Nate Geraci/X

Here, Geraci highlighted insights from a recent Poll conducted for Grayscale, one examining the interplay between cryptocurrency and the upcoming elections.

With Trump gaining traction as the Republican candidate on Polymarket, the final stretch promises to bring pivotal developments for the sector.

Source: Polymarket