Bitcoin ETFs jumped on Wednesday as Donald Trump won the presidency, with $BTC reaching $74,851. Bitcoin saw a 6.5% increase in the last 24 hours, CoinMarketCap data shows, boosting both spot cryptocurrency ETFs and funds investing in crypto-related firms.
The iShares Bitcoin Trust (IBIT), which is the largest spot Bitcoin ETFs with roughly $26 billion in assets, climbed 7.1%, according to etf.com. Meanwhile, the Grayscale Bitcoin Trust (GBTC), by market value, surged nearly 10%.
Trump’s win could signal a turning point for cryptocurrency markets. Experts believe his administration might foster conditions that encourage Bitcoin’s growth. According to James Butterfill, head of research at CoinShares, a Trump-led government could bring favourable policies, crypto-friendly regulation, and economic factors that support alternative assets like bitcoin.
Donald Trump Win Sparks Crypto Resurgence
Eric Balchunas, Senior ETF Analyst at Bloomberg, highlighted a massive trading surge, saying, “$IBIT has seen $1 billion in volume in the first 20 minutes—that’s about what it usually does in a full day. Other Bitcoin ETFs are seeing similar action. This could be a record-breaking day, and since prices are up, we’re likely seeing ‘feeding frenzy’ volume instead of panic-driven trading. Expect inflows this week.”
Damn, $IBIT has seen $1b in volume in the first 20min- that's about what it does in full day. Other bitcoin ETFs in same boat, crazy volume. Set for a record-breaking volume day (and given price is up so much, this is likely feeding frenzy volume vs crisis volume = look for… pic.twitter.com/1gSvV5Lwzo
— Eric Balchunas (@EricBalchunas) November 6, 2024
Other spot bitcoin ETFs climbed as well. The Valkyrie Bitcoin Fund (BRRR) rose 7.5%, while the Fidelity Wise Origin Bitcoin Fund (FBTC) went up by 7.1%. ETFs tied to crypto-related companies saw even bigger gains. The Valkyrie Bitcoin Miners ETF (WGMI), which focuses on firms that make at least 50% of their revenue from bitcoin mining, shot up 15.6%, according to etf.com data.
The Bitwise Crypto Industry Innovators ETF (BITQ), which tracks companies involved in cryptocurrency markets, jumped 14.2%, while the Invesco Alerian Galaxy Crypto Economy ETF (SATO) rose 11.7%. MicroStrategy-related ETFs also performed well, with the Defiance Daily Target 2x Long MSTR ETF (MSTX) soaring 21%. As of September 30, MicroStrategy holds 252,220 bitcoins, valued at $16 billion.
James Butterfill Gives His Two Cent on the BTC Act Amid Bitcoin ETFS Surge
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Butterfill believes the recent election outcome might speed up the push for institutional adoption of cryptocurrency. He points to Trump’s proposed “Bitcoin Act” as a major driver that could position Bitcoin as a strategic reserve asset. If passed, this would mean the U.S. government could acquire up to 5% of Bitcoin’s total supply.
Butterfill also highlighted Trump’s criticism of the current SEC leadership. With a shift in administration, there could be new, more crypto-friendly regulators, paving the way for broader acceptance of digital assets.
“Despite record inflows of $29 billion this year, institutional adoption is still limited in the larger financial market,” he said. “But if the Trump administration enacts favorable policies, we could see more institutional investors view Bitcoin as a legitimate part of their portfolios.”
Overview of Other Crypto-focused ETFs
Ethereum-focused ETFs are also seeing gains. The iShares Ethereum Trust (ETHA) rose by 9.7%, while the Fidelity Ethereum Fund (FETH) was up 10%. Ethereum itself traded at $2,653, marking an 8.1% increase, according to CoinMarketCap.
The crypto ETF market overall is seeing unprecedented inflows, with spot Bitcoin ETFs alone pulling in over $23.5 billion since their January debut, reports U.K. asset manager Farside Investors.
With Trump’s election win sparking a surge in crypto, Bitcoin ETFs are hitting record highs and seeing a flood of trading activity. Analysts like Butterfill are calling Trump’s proposed “Bitcoin Act” a potential game-changer, with the chance to bring Bitcoin into U.S. government reserves and boost institutional adoption.
If these policies move forward, it could mark a new era for crypto, encouraging more investors to see digital assets as essential parts of their portfolios. The intense trading, as Bloomberg’s Eric Balchunas describes it, is a “feeding frenzy”—not just from traders but from institutions aiming to secure their position in this growing market. This momentum may well shape the future of crypto-focused investments.
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