Bitcoin
Bitcoin ETF inflows hit six-week high of $422.5 million
US-listed exchange-traded funds that closely track bitcoin (BTC) spot prices are again in demand and how.
On Tuesday, the 11 funds recorded a cumulative net inflow of $422.5 million, the largest single-day tally since June 5, extending their winning streak to seven days, according to data tracked by Farside Investors It is Coin Glass.
BlackRock’s IBIT attracted over $260 million on Tuesday, accounting for a huge share of the accumulated inflows. FBTC attracted $61.1 million, while others except GBTC, DEFI and BTCW attracted less than $30 million each.
These funds have collectively raised over $1 billion in the past three days alone, bolstering investor confidence in bitcoin’s price outlook.
BTC has surged 23% to $65,800 since hitting a low near $53,500 on July 5, CoinDesk Data. In addition to ETF inflows, the price recovery may be linked to exhaustion of selling pressure from the state of Saxony in Germany, dramatic improvement in probability of pro-crypto Republican candidate Donald Trump winning the US presidential election on November 4 and Trump decision to appoint BTC holder and Ohio Republican Senator James David Vance as Vice President.
Vance has been a supporter of BTC and digital assets since 2021 and began circulating draft cryptocurrency legislation last month.
“It’s notable that Vance would advance crypto legislation at a time when he knew he was being considered by Trump for VP. This highlights the newfound political relevance of crypto, but also the extent to which digital asset policy has become part of the Republican vision for the U.S. economy,” FRNT Financial said in Tuesday’s newsletter.
“Furthermore, given that Trump can only serve for four more years if elected, the VP’s decision was also seen as a choice about political succession. It is additionally encouraging for the crypto community that Trump’s apparent political successor is a BTC holder and has prioritized crypto-friendly legislation,” FRNT added.
It is also likely that with Saxony’s oversupply behind us, the cryptocurrency market is catch up the sustained rally in tech stocks on Wall Street. Such is the optimism that reports of renewed repayments to creditors of defunct exchange Mt. Gox on Tuesday failed to keep BTC prices under pressure for long.