BlackRock’s Bitcoin ETF Dominates Ahead of Election Day

Bitcoin’s back, baby.

The price of the largest cryptocurrency is flirting with all-time highs ahead of an election that may be a turning point for the future of digital assets. Former President Donald Trump said he would take crypto “to the moon” at a convention in July, and cement the US as a global leader. Vice President Kamala Harris’ campaign also warmed up to the industry in recent weeks, saying her administration would foster innovation. In case you couldn’t guess, “Big Crypto” has reportedly become the largest lobbyist this election cycle. 

“Looking at the election, both campaigns have hinted at pro-crypto policies,” said Blake Morgan, managing partner at the investment firm Mineral Vault. Bitcoin rallied 13% in October alone. “A more crypto-friendly environment would likely have a positive impact.” 

Lunar Landings

All of that excitement has led investors to pour about $2.22 billion into exchange-traded funds that invest in underlying bitcoin last week. BlackRock took the lion’s share, with more than $2.15 billion landing in the iShares Bitcoin Trust ETF (IBIT). Even more impressive: $872 million came on Wednesday alone, shattering previous all-time highs for single-day inflows, according to Bloomberg. 

“$IBIT took in more cash than any other ETF in the world over the past week,” Bloomberg Intelligence senior analyst Eric Balchunas said in a post on X. It beat the more than 13,000 funds in the universe, including powerhouses like the Vanguard S&P 500 ETF and the iShares Core S&P 500 ETF, he added.

Keep in mind, IBIT is just 9 months old. “[It’s] a huge moment for the industry,” Morgan said.

What’s FOMO? It’s not all rainbows and rocket ships, however. Given crypto’s perceived risks, it’s been a hard sell for financial advisors that are much more comfortable playing it safe with client cash. Confidence has yet to fully recover from the 2022 crash, and investments into the sector are still playing catch-up with pre-“crypto winter” levels. VC funding into crypto firms continues to decline; this year has seen the smallest average investment sizes since 2017, according to a report by Galaxy.

“Bitcoin remains volatile, and the swings can be intense,” Morgan told The Daily Upside. Still, “bitcoin has shown unique growth potential that’s hard to match in traditional markets.”