Cryptocurrency ETFs surge after Trump election.
BlackRock and CONL’s IBIT stand out with notable gains.
Increase in investments reflects optimism in risk assets.
Following Donald Trump’s recent victory in the US presidential election, investment funds known as risk-based ETFs saw a massive inflow of capital, with cryptocurrency ETFs also posting significant gains. Among them, BlackRock’s Bitcoin ETF, IBIT, did not lead the rally but still managed to capitalize on a good return, thanks to the prevailing bullish market environment.
According to Bloomberg ETF analyst Eric Balchunas, there has been a notable “Trump-inspired flood of money” that has benefited risk ETFs across the board. While crypto funds have not been the biggest beneficiaries, there has been a notable increase in investment into these assets. On the Thursday after the election, risk ETFs attracted a whopping $22 billion, an amount that typically accumulates over the course of a full week. This movement brought net inflows for the year to $856 billion, approaching an annual record.
Not only did BlackRock’s IBIT perform remarkably well with $1.12 billion in inflows in a single day, but total spot Bitcoin ETF volume also reached $1.38 billion in the same period. Other crypto-focused venture ETFs such as the 2x Coinbase ETF (CONL) also excelled, with CONL seeing a 62% increase in just one day.
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This growth reflects a broader optimism towards investments considered high risk, with investors showing renewed interest in both traditional ETFs and those linked to cryptocurrencies.
At the time of publication, the price of Bitcoin was quoted at US$76,134.88, up 2% in the last 24 hours.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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Bitcoin ETF