QCP claims that Bitcoin ETF options will drive Trumps trades

Coin World Report:
Bitcoin ETF Witnesses Surge in Inflows, Record-Breaking Amounts
According to analysts, this momentum is far from over.
Experts have identified several factors, including strong institutional demand, favorable market conditions, and increased confidence in Bitcoin, all of which could further drive the influx of funds.
Last week, Bitcoin ETF saw a net inflow of $2 billion, making it the third-largest inflow in history. Leading the pack was the IBIT ETF by BlackRock, bringing in $1 billion, followed by the FBTC ETF by Fidelity, with an inflow of $319 million. Ethereum also experienced an increase, with its spot ETF attracting $79 million.
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Bitget Research’s Chief Analyst Ryan Lee stated that funds have been flowing in continuously for six days, which is a strong signal of institutional interest. He explained, “The main drivers are the increasing possibility of Trump winning the election and the technical rebound of Bitcoin prices.”
QCP Capital responded to these views,
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Bitcoin ETF saw a daily inflow of $203 million on just Friday when it closed. The company attributes this growth in part to the recent approval of Bitcoin ETF options by the U.S. Securities and Exchange Commission (SEC), which are listed on the New York Stock Exchange, and is expected to bring additional liquidity to the market.
QCP Capital wrote, “With the approval of ETF options by the SEC, we believe this will provide the necessary liquidity for ETFs to attract sustainable inflows.”
One of the main catalysts for continued inflows is the so-called “Trump trade.”
Data from crypto prediction market Polymarket shows that Donald Trump is currently leading with odds of 61.4%, while Vice President Kamala Harris has odds of 39%. Trump’s potential re-election has received positive evaluations from market participants, as his government has shown a positive attitude towards cryptocurrencies.
Lee stated, “It is well known that Trump is a supporter of Bitcoin, and the likelihood of his victory is increasing, which is seen as a positive signal for the market.” Trump’s comments at the Nashville Bitcoin Conference, where he encouraged people not to sell Bitcoin, further fueled investors’ optimism.
Lee also pointed out that Bitcoin recently rebounded from a support level of $58,000, creating technical momentum for a price rebound, which has led to more funds entering the asset.
Vijay Pravin Maharajan, CEO and Founder of bitsCrunch, said
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that market sentiment is becoming increasingly favorable, as evidenced by the sharp rise in the cryptocurrency fear and greed index, which has jumped from 38 to 72 in just a few weeks. He said, “This indicates strong interest in risk assets, including Bitcoin.”
Maharajan also noted that geopolitical developments, such as the potential easing of tensions in the Middle East, could further enhance positive market sentiment. He predicts that Bitcoin could break its previous all-time high of $73,850 as early as November and surpass $100,000 in the near future.
Meanwhile, in a note sent to
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, Bernstein Research reinforced the view that Bitcoin ETF inflows will continue to grow, noting $2 billion in new purchases last week, bringing the total inflow for the year to $20.5 billion. With assets under management exceeding $63 billion, Bernstein analysts believe that these inflows are increasingly driving spot market demand for Bitcoin as asset management companies focus on distributing these products to wealth advisors and telcos.
Bernstein stated, “The incremental inflows into ETFs are now driving spot demand.” The shift from initial demand driven by hedge funds and arbitrage traders is expected to contribute to a more stable and sustained inflow into Bitcoin ETFs.
However, Bitfinex analysts expressed some caution,
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noting that the surge in inflows is part of a broader trend of increasing institutional adoption of Bitcoin and expectations for a better regulatory environment after the upcoming U.S. election.
Bitfinex analysts stated, “However, we remain cautious, noting that inflows don’t always lead to sustained price increases. Bitcoin previously attempted to break the $70,000 level accompanied by significant ETF inflows, but failed. The historical volatility of Bitcoin prices suggests that while inflows enhance confidence in Bitcoin ETFs as viable investment tools, further volatility may occur.”
Editor
Stacey Elliott