US Bitcoin ETFs saw their highest daily inflows since their inception, raising $870 million on Tuesday. This raise in investment comes as the largest cryptocurrency approaches an all-time high of $73,700, originally reached in March.

This comes as investor sentiment appears to be buoyed by speculation about a potential victory for GOP candidate Donald Trump over Vice President Kamala Harris, which many believe could create a more positive environment for the economy. digital resource ecosystem, ultimately favoring cryptocurrency prices.

Bitcoin ETFs Inflow and Prices Rise

According to Bloomberg dataTuesday’s subscriptions increased the year-to-date inflows of a group of 12 Bitcoin ETFs to over $23 billion. Analysts attribute the growing demand for Bitcoin exposure to Trump’s elevated rates in election betting markets.

However, while Trump leads in forecast markets, polls show a tight race with Vice President Harris, who has pledged to support a regulatory framework for the cryptocurrency industry. Still, Trump’s approach it seems to have appealed more to the community.

Adding to the speculation, Bitcoin options markets reflect a one-third chance of a price move of more than 10% on Election Day, November 5, as pointed out by Nick Forster, founder of cryptocurrency trading platform Derive.xyz.

This raise would cause the price of Bitcoin to reach approx recent all-time record at $72,900 in a potential scenario where BTC consolidates above $72,000 over the next few days before the election.

Forster believes that such volatility often encourages traders to take positions on potential market moves, increasing demand for Bitcoin ETFs and contributing to the current price rally since the start of the week.

An expert warns against a potential sell-out

ETF expert Eric Balchunas also commented on the bullish sentiment around Bitcoin ETFs. He noted that these funds are on track to reach 1 million BTC today.

In a recent social media post, Balchunas reported that US spot ETFs could top 1 million BTC by next Wednesday, potentially exceeding the holdings of Bitcoin’s mysterious creator, Satoshi Nakamoto, by mid-December, with the funds adding around 17,000 BTC per week.

However, after Tuesday’s results, Balchunas noted, “We will have to raise our projections,” emphasizing that Bitcoin ETFs have taken up more than 12,000 coins in one day and are currently holding 996,000 BTC.

The expert expressed optimism about the likelihood of crossing the 1 million mark today, saying it was “extraordinary” trading volume from the previous day will likely translate into significant inflows.

Balchunas also cautioned that market conditions can be unpredictable. “Anything can happen,” he warned, referring to the risk of a sudden sell-off that could delay the 1 million BTC milestone.

Conversely, if Bitcoin prices continue to rise and Trump’s victory increases market enthusiasm, fear of missing out (FOMO) could drive even faster accumulation, according to expert analysis.

At the time of writing, the largest cryptocurrency on the market was trading at $72,360, up over 8% in a 7-day period.

Featured image from DALL-E, chart from TradingView.com