As the US election approaches, investors are actively increasing their holdings of Bitcoin, CNBC reports

As the heat of the U.S. presidential election intensifies, global investors are turning to Bitcoin, the pioneering cryptocurrency, media organization CNBC reported. According to a report on Friday, CNBC noted that investor interest in cryptocurrencies, especially Bitcoin, is rising. The media mentioned that the "first generation" of cryptocurrencies in this emerging field became a hot topic in the months before the election, and millions of dollars have been invested in it.

Investor demand for Bitcoin ETFs rises
As the election process approaches, there has been a notable rise in U.S. investor demand for bitcoin exchange-traded funds (ETFs), a traditional financial instrument that offers alternative exposure to the largest cryptocurrency by market cap. Recent interest is evident in continued inflows into U.S. ETFs. Net inflows into Bitcoin investment vehicles reached $5.6 billion over the past three weeks, the highest level since February.

Notably, Blackstone’s iShares Bitcoin Trust (IBIT) has received the highest inflows since the re-strengthening of inflows. The asset manager received a net $4.4 billion over the past three weeks, accounting for 79% of the bitcoin received by U.S. issuers.

Trump trade sentiment drives inflows
Reports have linked the growing inflows to Wall Street’s bets on Republican candidate Donald Trump’s victory, and as his odds of victory rise, analysts have dubbed cryptocurrencies the “Trump trade” and have repeatedly claimed that prices will rise if the pro-crypto candidate wins on November 5.

Trump has a friendly attitude towards digital assets, mentioning that he hopes to make the United States the world's cryptocurrency capital and intends to use Bitcoin as a strategic reserve asset. As his chances of winning rise significantly, investors will want to position themselves for maximum returns on the assets he has shown interest in.

Notably, the increase in capital inflows has impacted the price of Bitcoin, bringing the leading crypto asset close to its all-time highs. Bitcoin traded above $73,000 on Tuesday but has failed to hold that price, falling to $69,672 at the time of writing.

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