The U.S. presidential election seems to have reshaped the Bitcoin landscape, with pro-Bitcoin candidate Donald Trump’s victory sparking record-breaking interest in Bitcoin and Bitcoin ETFs.
Trump’s return to the White House sent the bitcoin market into a much anticipated bullish rally, setting the stage for a historic trading day for Bitcoin ETFs and a renewed optimism across digital asset markets.
On November 6, the very day of Trump’s election win, BlackRock’s iShares Bitcoin Trust (IBIT) ETF shattered trading records. This spot Bitcoin ETF saw more than $4.1 billion in daily trading volume, making it the fund’s largest single-day trading activity since its inception.
Bloomberg Senior ETF analyst Eric Balchunas highlighted this milestone, adding, “[…] For context, that’s more volume than stocks like Berkshire Hathaway, Netflix, or Visa saw today.”
The overall trading volume of Bitcoin ETFs on Election Day exceeded $6 billion, the highest total since March.
Balchanus called the day “an all-around banger for an infant category that never ceases to amaze,” referring to the growing popularity of bitcoin-based exchange-traded funds, which offer investors an easy way to gain exposure to Bitcoin without directly owning it.
The impact of Trump’s victory on Bitcoin ETFs extended beyond trading volumes to substantial capital inflows.
On the same day, the 12 spot Bitcoin ETFs collectively attracted $621.9 million in net inflows, with Fidelity’s FBTC leading the pack, bringing in a hefty $308.7 million. Other funds, like those from Ark Invest and 21Shares, Bitwise, and Grayscale, each reported positive inflows exceeding $100 million.
Trump’s pro-Bitcoin stance appears to be a driving factor in these movements. During his campaign, he pledged to “make the U.S. the world capital for Bitcoin and crypto.”
He also voiced intentions to remove U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, whose regulatory policies have been unpopular, to say the least, in the digital assets community.
With Trump’s commitment to establish a “crypto advisory council” and support the establishment of a national bitcoin reserve, it’s no surprise that his win has revived investor confidence in digital assets.
Trump’s win isn’t just helping Bitcoin ETFs—Bitcoin itself saw a significant price surge, hitting an all-time high of over $76,500 before retracing to around $75,000.
The spike lifted bitcoin’s market capitalization to $1.48 trillion on November 7, driven by the renewed optimism surrounding Trump’s administration and his pro-Bitcoin policies.
The rise in price is further fueled by increased institutional interest in Bitcoin ETFs, which has led the digital asset to become one of the top-performing ETF categories in 2024.
According to Nate Geraci, president of The ETF Store, Bitcoin ETFs have collectively secured $24.1 billion in net inflows since their launch earlier this year, making it “the most dominant ETF asset” of 2024.
These developments reflect a sharp turnaround from earlier concerns in the digital assets market.
Following the 2024 Bitcoin halving, which cut miner rewards in half, mining revenue took a hit, sparking worries about potential sell-offs and downward pressure on bitcoin prices.
But with Trump’s win, sentiment has shifted, and the Bitcoin Fear & Greed Index, a metric that gauges market sentiment, jumped to a bullish “extreme greed” level of 77.
Many, like Matt Hougan, Bitwise’s chief investment officer, see Trump’s victory as a potential spark that could lead to a “golden age” for digital assets.
While Trump’s victory undeniably played a role in bitcoin’s recent surge, the spotlight also remains on BlackRock’s IBIT, which has become a significant part of the financial landscape.
Having set a record trading day volume of over $4.1 billion, IBIT now rivals some of the biggest names on the stock market.
Despite the robust trading activity, IBIT saw a net outflow of $69.1 million on Election Day, hinting that some investors may have taken profits after the spike.
Moreover, Balchunas noted that many other Bitcoin ETFs “did 2x their average volume,” reflecting strong interest and suggesting that investors are responding enthusiastically to the perceived stability that comes with political support.
Bitcoin ETFs have grown swiftly since they were approved by the SEC, with the sector reporting net inflows of over $24 billion year-to-date.
The excitement surrounding BlackRock’s fund and other ETFs comes at a time when investors are increasingly looking for accessible ways to participate in the bitcoin market, and recent developments suggest even more options might soon be available.
Looking ahead, experts believe the momentum around Bitcoin ETFs and the broader market will remain strong.
With pro-Bitcoin leadership back in the White House, there’s speculation that the U.S. may enact more favorable policies toward Bitcoin, which could lead to further inflows into Bitcoin ETFs and higher adoption rates across various digital assets.
While the influx of capital is undoubtedly a positive sign, the bitcoin market also faces challenges.
As miners approach the depletion of their accumulated bitcoin reserves and face rising operational costs, the market could see significant shifts in the near future.
For now, though, the optimism surrounding Bitcoin ETFs and Trump’s pro-Bitcoin stance has rekindled confidence in digital assets, making them one of the hottest investments of 2024.
In the words of The ETF Store’s Nate Geraci, Bitcoin has been the most dominant ETF asset this year, a trend that, with political support and surging investor interest, looks likely to continue.
