On November 6, BlackRock’s iShares Bitcoin Trust (IBIT) achieved an unprecedented trading milestone, with volume skyrocketing to $4.1 billion in a single day, the highest in its history. This rise, following the re-election of Donald Trump as President of the United States, indicates a powerful wave of institutional and potentially retail interest in cryptocurrency ETFs.
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Bloomberg ETF analyst Eric Balchunas noted on ETF. To add perspective, many Bitcoin ETFs also saw a significant rally, trading at nearly double their typical volume. This is reminiscent of the highly volatile early days of Bitcoin ETFs in January.
Analysts attribute this notable performance to a combination of factors, including Bitcoin’s price momentum, which saw the asset rise to an all-time high of $76,500. However, according to TradingView data shortly after, the asset’s price fell slightly to $75,267. However, it remains one of the dominant assets in the ETF outlook for 2024.
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As ETF Store President Nate Geraci highlighted in an X post, Bitcoin ETFs have become some of the most successful launches this year. Additionally, Trump’s return to office has generated optimism in the crypto space, with many pointing to his pro-crypto stance and anticipated political support as possible catalysts for Bitcoin’s continued growth.
As Bitcoin ETFs break new ground, the broader picture has seen asset managers rush to file for a variety of altcoin-focused ETFs, including those on Solana, XRP, and Litecoin. They also proposed several crypto index ETFs, which allow investors to hold diversified digital assets.
Balchunas previously described these filings as “call options in the event of a Trump victory,” indicating that fund managers may be betting on a favorable regulatory climate under the new administration. If pro-crypto policies become a reality, experts believe the market could see even more significant entries and innovations in the ETF space.