On November 6, BlackRock’s iShares Bitcoin Trust (IBIT) reached an unprecedented trading milestone, with volume rising to $4.1 billion in a single day – the highest ever. This surge, following the re-election of Donald Trump as President of the United States, signals a powerful wave of institutional and possibly private interest in cryptocurrency ETFs.
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Bloomberg ETF analyst Eric Balchunas noted on To add perspective, many Bitcoin ETFs also saw significant increases, trading at nearly twice their typical volume. This is reminiscent of the highly volatile early days of Bitcoin ETFs in January.
Analysts attribute this remarkable performance to a mix of factors, including Bitcoin’s price momentum, which saw the asset climb to an all-time high of $76,500. However, based on TradingView data shortly afterwards, the asset’s price fell slightly to $75,267. Nevertheless, it remains one of the dominant assets in the ETF’s 2024 outlook.
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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 sparked optimism in the crypto space, with many pointing to his pro-crypto stance and expected policy support as potential catalysts for Bitcoin’s continued growth.
As Bitcoin ETFs break new ground, the broader landscape sees asset managers rushing to apply for a range of altcoin-focused ETFs, including those for Solana, XRP and Litecoin. They have also proposed several crypto index ETFs, allowing investors to hold diversified digital assets.
Balchunas previously described these filings as “call options on a Trump victory,” indicating that fund managers may be banking on a favorable regulatory environment under the new administration. Should the pro-crypto policy become a reality, experts believe the market may see even greater inflows and innovations into the ETF space.
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However, it’s not all rosy for Bitcoin purists. Some argue that the increasing influence of financial giants like BlackRock could undermine Bitcoin’s fundamental decentralization ethos. The concern is that as these companies build substantial Bitcoin holdings, they could inadvertently centralize control, threatening the independence that originally attracted many to cryptocurrency.
An anonymous crypto analyst noted that while ETFs add stability to Bitcoin’s market presence, they can also consolidate assets in the hands of traditional institutions, potentially running counter to the decentralized ideals underpinning the crypto space.
The political climate also creates additional complexity. A recent CryptoSlate report suggested that shifts in US policy, especially after Trump’s election, could significantly impact crypto ETF inflows. Additionally, changes in the U.S. government could create ripples in the market, creating both opportunity and volatility.
With Trump’s pro-crypto stance, some analysts, such as Fadi Aboualfa, head of research at Copper.co, predict that Bitcoin’s price could reach $100,000 by his inauguration on January 20.
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This article A Huge Day For BlackRock’s Bitcoin ETF As Trading Volume Hits All-Time Levels With $4.1 Billion Trading Value originally appeared on Benzinga.com
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