BlackRock, the largest asset manager globally, has achieved a major milestone in the Bitcoin ETF market, positioning its iShares Bitcoin Trust with record inflows since the start of these investment funds in January. On Wednesday, approximately $872 million flowed into the fund, marking a significant daily record.
The influx emphasizes robust demand for Bitcoin ETFs, especially with the approach of the US Presidential Election, as subscriptions for this new product have proved among the highest worldwide in 2024. BlackRock's Bitcoin holdings now account for 2.04% of Bitcoin's capped supply of 21 million coins.
The surge in Bitcoin ETF demand is attributed to the "Trump trade," with pro-crypto nominee Donald Trump gaining momentum in betting markets ahead of the election. His proposals include positioning the US as a cryptocurrency hub and establishing a strategic Bitcoin reserve to reduce national debt.
In contrast, Democratic Vice President Kamala Harris has pledged regulatory support for the crypto industry but has not provided details regarding her potential administration's specific plans, particularly concerning SEC leadership.
Market experts suggest a bullish sentiment for Bitcoin, with predictions indicating potential price peaks between $174,000 and $462,000 in the current cycle, citing historical bull cycle patterns. There is also an observed trend of significant Bitcoin outflows from exchanges, suggesting investors prefer holding Bitcoin, possibly leading to upward price pressures as BTC approaches its all-time high.
