In November. 6, Black Rock iShares Bitcoin Trust (IBIT) has achieved an unprecedented trading milestone, with trading volume soaring to $4.1 billion in a single day – an all-time high. This rise, following the re-election of Donald Trump as President of the United States, indicates a strong wave of institutional and possibly retail interest in cryptocurrency ETFs.
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Bloomberg ETF analyst Eric Balchunas noted on To add perspective, several 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 impressive performance to a combination of factors, including Bitcoin’s price momentum, which has seen the asset rise to a record high of $76,500. However, based on TradingView data shortly after, the price of the asset fell slightly to $75,267. However, it remains a dominant asset in our 2024 ETF forecasts.
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As ETF Shop head Nate Geraci explained 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 cryptocurrency 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 has seen asset managers scramble to place orders for a range of altcoin-focused ETFs, including those for Solana, XRP and Litecoin. They have also proposed several cryptocurrency index ETFs, allowing investors to own various digital assets.
Balchunas previously described these filings as “call options on a Trump win,” noting that fund managers may rely on a favorable regulatory climate under the new administration. If pro-crypto policies become a reality, experts believe that the market may see more significant inflows and innovations in the field of ETFs.
See also: Dogecoin millionaires on the rise – Investors Who Own Over $1 Million in DOGE Revealed!
However, not everything is rosy for Bitcoin supporters. Some argue that the growing influence of financial giants like BlackRock could undermine Bitcoin’s fundamental decentralization spirit. The concern is that as these companies accumulate large holdings of bitcoin, they could inadvertently centralize control, threatening the independence that originally attracted many. Cryptocurrency.
One anonymous cryptocurrency analyst noted that while ETFs add stability to Bitcoin’s market presence, they may also consolidate assets into the hands of traditional institutions, which could go against the decentralized ideals that underpin the cryptocurrency space.
The political climate also adds complexity. A recent CryptoSlate report noted that shifts in US policy, especially following Trump’s election, could significantly impact cryptocurrency ETF flows. Furthermore, changes in the US administration could send ripples through the market, which could create opportunities and volatility.
With Trump’s pro-cryptocurrency stance, some analysts, such as Fadi Abu Alfa, head of research at Copper.co, predict that the price of Bitcoin could reach $100,000 by his inauguration on January 20.
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This article A massive day for BlackRock’s Bitcoin ETF as trading volume reaches unseen levels with $4.1 billion traded Originally appeared on Benzinga.com
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