BlackRock bitcoin ETF records $1 billion volume post-Trump victory, analysts predict $100k BTC price surge
BlackRock bitcoin ETF records $1 billion volume post-Trump victory, analysts predict $100k BTC price surge
In a historic moment for cryptocurrency markets, BlackRock's Bitcoin exchange-traded fund (ETF) recorded over $1 billion in trading volume within the first 20 minutes of trading following the re-election of Donald Trump as U.S. President. Analysts attribute this remarkable surge in trading to renewed optimism for Bitcoin, as Trump, an advocate of cryptocurrency, is set to return to office on January 20. His administration's anticipated pro-crypto stance could potentially reshape the regulatory environment and increase institutional interest in digital assets.
According to Bloomberg data, BlackRock's iShares Bitcoin Trust (IBIT) saw $1.1 billion in trading volume shortly after markets opened on November 6. Bloomberg ETF analyst Eric Balchunas noted that this volume matches a typical full day’s trading, underscoring intense investor interest in Bitcoin as the U.S. political landscape shifts. Other Bitcoin ETFs experienced similarly high volumes, highlighting heightened expectations for cryptocurrency under Trump’s leadership.
Analysts Predict a Bullish Future for Bitcoin Under Pro-Crypto Leadership
Analysts predict that Bitcoin’s price could continue its upward trajectory in the coming months. Fadi Aboualfa, head of research at Copper.co, a cryptocurrency custodian, noted that valuation models support the possibility of Bitcoin reaching $100,000 by the time Trump takes the oath of office in January. Trump’s victory over Democratic candidate Kamala Harris, who has remained largely silent on crypto issues, contrasts with the Biden administration's regulatory approach, which saw the Securities and Exchange Commission (SEC) bring more than 100 actions against crypto firms. In contrast, Trump has expressed ambitions to make the U.S. “the crypto capital of the world,” fueling expectations for a friendlier regulatory environment.
Bitcoin ETFs have dominated the market this year, with six of the top 10 most successful ETF launches in 2024 focused on Bitcoin. As excitement around Bitcoin ETFs grows, asset managers have increasingly submitted applications to list ETFs based on other cryptocurrencies, including Solana, XRP, and Litecoin. These filings reflect anticipation for an administration more open to digital asset innovation. Balchunas noted in an October 25 post on the X platform that these applications were "call options on a Trump victory," hinting at industry hopes for regulatory leniency under a pro-crypto government.
The record-setting trading volumes and Bitcoin’s current momentum underscore growing confidence in cryptocurrency’s role in the U.S. financial system. As January approaches, market observers will be closely watching how Trump’s return to the White House may influence the broader crypto landscape, potentially shaping regulatory policies that could either accelerate or moderate the sector's growth.
However, BlackRock still occasionally faces issues with fund outflows.
