30s Summary
BlackRock’s Bitcoin ETF saw a surge in trading following Donald Trump’s US presidential win, with $4.1bn traded in one day, a higher volume than companies such as Berkshire Hathaway, Netflix, and Visa. The fund’s price also rose by 10%, marking it its second-best trading day. Coinciding with Trump’s victory, Bitcoin reached an all-time high of $76,500, dipping slightly to $75,267 at the time of writing. Half of the top 10 best-performing ETFs of 2024 were Bitcoin-focused, showing the growing optimism towards the cryptocurrency. Trump’s pro-crypto stance is expected to drive the price of Bitcoin higher and boost other cryptocurrencies.
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After Donald Trump’s win in the US Presidential election, BlackRock’s Bitcoin-focused ETF had a record-breaking trading day. Bloomberg ETF analyst, Eric Balchunas reported that the iShares Bitcoin Trust (IBIT) saw its highest trading volume ever, with $4.1 billion worth of trades in just one day. To put that into perspective, that’s even more activity than companies like Berkshire Hathaway, Netflix, and Visa saw that day. On top of that, the price of the fund went up 10%, making it the second-best day for the ETF since it was first launched.
Furthermore, Balchunas noted that other Bitcoin ETFs also had a great day. He specified that most of the funds more than doubled their average trading volume.
The record-breaking day for IBIT is part of a larger trend of optimism towards Bitcoin. The cryptocurrency reached a new all-time high price of $76,500 on Nov 6, less than a day after Trump – known for his favourable attitude towards crypto – was announced as the next president. Although the price has gone down a bit since then, it stood at a strong $75,267 at the time this article was written.
Bitcoin has been a star player in the ETF scene this year. Half of the top 10 best performing ETF launches of 2024 were Bitcoin-focused, according to Nate Geraci, the president of ETF Store.
In addition, it’s predicted that the pro-crypto policies pledged by Trump could help other cryptocurrencies grow, too. Already this year, we’ve seen asset managers rushing to apply for regulatory approval to launch ETFs that focus on different cryptos like Solana, XRP, and Litecoin.
There’s also a number of applications pending approval for crypto index ETFs. These kinds of funds would allow investors to buy a diverse range of cryptocurrencies in one go.
When these applications were submitted, Balchunas characterised them as essentially betting on Trump becoming president. Now that Trump is due to take office, Bitcoin’s price is expected to climb higher, with many predicting it could even reach $100,000 by the time Trump is inaugurated on Jan 20.