Following Donald Trump’s re-election as the 47th President of the United States on November 5, BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), had an astonishing $1 billion in trading activity within the first 20 minutes of the market opening. This large trading activity, which generally lasts a full day, indicates increased investor interest, which analysts believe will drive Bitcoin’s price higher.
Market analysts believe that Trump’s strong pro-crypto stance and suggested legislation will benefit the bitcoin industry. Trump pledged during his campaign to establish the United States as a global leader in cryptocurrencies, promising to implement policies that would facilitate the trading of digital assets nationwide. He even proposed establishing a strategic national Bitcoin reserve, arguing that a shift in the government’s policy might make Bitcoin an essential component of the US financial system.
Bitcoin’s dramatic rise in price, to roughly $74,700 following the election, has mirrored the increase in ETF trading volumes. Trump’s triumph over Democratic nominee Kamala Harris implies a potential shift in regulatory strategy. Under President Biden, the Securities and Exchange Commission (SEC) was tough, launching multiple regulatory actions against cryptocurrency companies. Trump’s government, on the other hand, appears to be taking a more positive stance, as evidenced by his promise to replace present SEC executives.
Institutional investors are increasingly turning to Bitcoin ETFs as a safer and more accessible option to engage in the cryptocurrency industry. BlackRock’s IBIT has swiftly become one of the best-performing ETFs in 2024, outperforming other ETFs and drawing billions of dollars in trade activity since its inception. Industry insiders believe this reflects broader institutional trust in Bitcoin’s future value.
Market observers are closely monitoring other cryptocurrency ETFs, such as funds that track assets like Solana and XRP, as asset managers strive to secure approval for additional ETFs that will provide a wider range of tokens. With Trump’s election and policy ambitions, economists believe Bitcoin’s price could hit $100,000 before his January 2025 inauguration.
This high volume in BlackRock’s ETF demonstrates investors’ strong interest in Trump’s reelection and pro-crypto promises. Trade volumes appear to sustain Bitcoin’s price momentum, highlighting the cryptocurrency’s continued attractiveness as a hedge against economic instability and a signal of the United States’ prospective new direction in digital finance.
