Title Rises to $64K on Prospects of Trump Presidency

Bitcoin experienced a surge in value on Tuesday, fueled by expectations of more favorable cryptocurrency regulations in the United States. Traders are speculating that Donald Trump may secure a second term in the 2024 presidential election.

Recent reports indicated that the Securities and Exchange Commission (SEC) is nearing the approval of exchange-traded funds (ETFs) that will directly track Ether, the second-largest cryptocurrency, further enhancing hopes for a better regulatory climate.

By 09:11 ET, Bitcoin had risen 2% in the last 24 hours, reaching $63,893.4. Speculations regarding Trump’s potential victory contributed to Bitcoin’s recovery, helping the cryptocurrency to overcome previous concerns related to selling pressure from allocations by the defunct crypto exchange Mt. Gox, which had driven Bitcoin’s price down to as low as $54,000 earlier in July.

### Bitcoin Gains from Trump Speculation

Bitcoin’s uptick came after a failed assassination attempt on Trump over the weekend, which was perceived to significantly boost the former president’s popularity. This development is believed to provide Trump with a competitive edge over President Joe Biden for the upcoming election. Trump was officially nominated as the Republican presidential candidate on Monday and has selected Ohio Senator J.D. Vance as his running mate.

Trump has consistently shown support for the cryptocurrency sector, recently asserting that the future of Bitcoin should be established in the U.S. rather than overseas. He is also scheduled to speak at the Bitcoin Conference in Nashville later this month.

A second Trump administration is likely to result in a more favorable regulatory environment for cryptocurrency in the U.S., particularly following a series of crackdowns by both the SEC and the Department of Justice in recent years. The SEC currently has ongoing cases against XRP’s issuer and crypto exchange Coinbase, both facing allegations related to the distribution of unregistered securities.

### Altcoins Rise and Ether Excels Amid ETF Optimism

In the broader cryptocurrency market, altcoins mirrored Bitcoin’s gains. The second-largest cryptocurrency, Ether, rose 1.6% to $3,405.75. A report indicated that the SEC has provided preliminary approval to at least three of the eight asset managers who submitted applications for a spot Ether ETF, with trading expected to start next week.

The introduction of spot Ether ETFs could attract a significant number of institutional investors, similar to the influx seen with Bitcoin earlier this year, which led to record highs shortly after those ETFs launched.

Other altcoins also saw increases, with certain tokens up 2.8% and 2.6%, respectively. Some tokens, however, experienced declines, with one falling by 1.8%. Among meme tokens, another added 3.3%, while another rose 6.3%.

### Ether ETF Inflows Expected to Lag Behind Bitcoin ETFs

Citi’s recent research suggests that spot Ether ETFs in the U.S. are anticipated to receive net inflows at only 30% to 35% of the levels experienced by Bitcoin ETFs. This projection translates to expected inflows of approximately $4.7 billion to $5.4 billion over the next six months. However, Citi analysts warned that actual inflows and the relative performance of Ether could fall short of these estimates.

The analysis points out that while Ether may present diversification benefits in the long term due to its broader range of use cases, this is not currently reflected in the market. Spot Ether ETFs are set to become available for trading in the U.S. following approval from the SEC.