Bitcoin ETFs Experience Surge in Investment Post-Trump Election
Following Donald Trump's election victory, U.S. exchange-traded funds (ETFs) that invest directly in Bitcoin have seen an influx of approximately $10 billion. This significant investment surge is attributed to Trump's favorable stance towards the cryptocurrency sector, which many investors believe signals a forthcoming market boom. Major financial institutions, including BlackRock and Fidelity Investments, have collectively attracted nearly $9.9 billion in net inflows since November 5, raising their total assets to around $113 billion, as reported by Bloomberg.
In a strategic move to bolster the crypto sector, Trump appointed a digital asset advocate as the new head of the U.S. Securities and Exchange Commission and designated a White House representative for artificial intelligence and cryptocurrencies. This shift in policy marks a stark contrast to the previous administration's skepticism towards digital assets. Trump's administration is now considering supportive regulations and has even proposed the establishment of a national strategic reserve for Bitcoin, reflecting a significant change in the Republican Party's approach to cryptocurrencies.
Bitcoin Reaches New Heights Amid Market Volatility
Bitcoin's price trajectory has been remarkable, with the cryptocurrency first surpassing the $100,000 mark on December 5. As of the latest updates, Bitcoin is trading at $89,640.36, following a six-week streak of gains—the longest since its surge in 2021. However, the market remains volatile; after reaching the $100,000 milestone, Bitcoin briefly dipped to $92,000, prompting some analysts to express caution regarding its future performance. David Lawant, head of research at FalconX, noted that a sustained push beyond $100,000 may require additional positive catalysts.
In addition to Bitcoin's performance, Ethereum-based ETFs have also gained traction, with nine funds attracting nearly $2 billion in net investments since Trump's election. Ethereum has recently outperformed Bitcoin, with its price increasing by 8.45% over the past week compared to Bitcoin's 3.73% rise, according to CoinMarketCap.
