On November 6, Black Rock iShares Bitcoin Trust (IBIT) has reached an unprecedented trading milestone, with volume reaching $4.1 billion in a single day – its highest ever. This surge, following the re-election of Donald Trump as president of the United States, signals a powerful wave of institutional and potentially retail interest in cryptocurrency ETFs.
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Bloomberg ETF analyst Eric Balchunas noted on ETFs. To add perspective, many Bitcoin ETFs have also seen significant upside, trading at nearly twice their usual volume. This is reminiscent of the very volatile debut of Bitcoin ETFs in January.
Analysts attribute this remarkable performance to a combination of factors, including Bitcoin’s price momentum, which saw the asset surge to an all-time high of $76,500. However, based on TradingView data shortly after, the asset’s price fell slightly to $75,267. Nevertheless, it remains one of the dominant assets in the ETF outlook for 2024.
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As ETF Store President Nate Geraci pointed out in an article, Bitcoin ETFs have become one of the most successful launches this year. Additionally, Trump’s return to power has sparked optimism in the crypto space, with many pointing to his pro-crypto stance and anticipated political support as potential catalysts for Bitcoin’s continued growth.
While Bitcoin ETFs innovate, the broader landscape has seen asset managers rush to file a range of altcoin-focused ETFs, including those for Solana, XRP and Litecoin. They also offered several crypto index ETFs, allowing investors to hold diversified digital assets.
Balchunas previously described the filings as « call options on a Trump victory, » indicating that fund managers could be banking on a favorable regulatory climate under the new administration. If pro-crypto policies become a reality, experts believe the market could see even greater influxes and innovations in the ETF space.
