Amid the broad rally, Bitcoin ETFs have seen solid momentum since Donald Trump's election victory. About $10 billion has been poured into ETFs amid optimism for a cryptocurrency-friendly regulatory environment under President-elect Donald Trump. The solid inflows have lifted Bitcoin ETFs’ total assets to approximately $113 billion.
BlackRock iShares Bitcoin Trust
IBIT was at the forefront, attracting nearly $5.6 billion of capital since Nov. 5. This was followed by inflows of $882 million for
Fidelity Wise Origin Bitcoin Trust
FBTC, $39.7 million for A
RK 21Shares Bitcoin ETF
ARKB, $18.5 million for
Coinshares Valkyrie Bitcoin Fund
BRRR and $12.7 million for
Franklin Bitcoin ETF
EZBC.
Trump has vowed to make the United States “the crypto capital of the planet.” In the latest move, Trump nominated Paul Atkins as chair of the Securities and Exchange Commission, fulfilling his most important campaign promise to the crypto industry. Atkins was seen as a crypto-friendly pick for the position (read: Bitcoin Tops $100K Mark: Will Its ETFs Drive the Next Boom?).
Other key developments, including Elon Musk heading the newly established Department of Government Efficiency and plans for a dedicated White House crypto policy role, fueled the remarkable rally. Trump also plans to build a national Bitcoin reserve, signaling a strong personal and policy interest in digital assets.
The world's largest cryptocurrency topped the historic $100,000 milestone for the first time last week.
ETFs in Focus
iShares Bitcoin Trust (IBIT)
iShares Bitcoin Trust seeks to reflect the performance of the price of Bitcoin. It enables investors to access Bitcoin within a traditional brokerage account. The fund charges 25 bps in annual fees from investors. IBIT has AUM of $48 billion and trades in an average daily volume of $44.5 million shares.
Fidelity Wise Origin Bitcoin Trust (FBTC)
Fidelity Wise Origin Bitcoin Trust also offers exposure to the price of bitcoin — without buying bitcoin directly — in brokerage, trust and tax-advantaged accounts. It has accumulated $19 billion in its asset base. FBTC charges 25 bps in annual fees and trades in an average daily volume of 6 million shares.
ARK 21Shares Bitcoin ETF (ARKB)
ARK 21Shares Bitcoin ETF has AUM of $4.7 billion. It seeks to track the performance of Bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant. It has an expense ratio of 0.21% and trades in a volume of about 2 million shares per day on average.
Valkyrie Bitcoin Fund (BRRR)
Valkyrie Bitcoin Fund reflects the performance of the value of a bitcoin as represented by the CME CF Bitcoin Reference Rate - New York Variant. It has an expense ratio of 0.25%, but the fee has been waived off for the first three months. Valkyrie Bitcoin Fund has accumulated $901.2 million in its asset base and trades in an average daily volume of 226,000 shares.
Franklin Bitcoin ETF (EZBC)
With AUM of $727.8 million, Franklin Bitcoin ETF seeks to reflect generally the performance of the price of bitcoin. It charges 99 bps in annual fees and trades in an average daily volume of 216,000 shares.
What’s Ahead?
Bitcoin ETFs will continue to see solid inflows, given growing institutional interest. MicroStrategy MSTR is on a buying spree for Bitcoin. It added 15,400 bitcoins to its holdings, spending $1.5 billion between Nov. 25 and Dec. 1. This came on the heels of purchases of more than 27,000 Bitcoin between Oct. 31 and Nov. 10. MicroStrategy now owns around $30 billion in Bitcoin. This has bolstered enthusiasm in the cryptocurrency markets.
With the United States adopting pro-crypto policies, other countries are also shifting toward a more favorable stance. Notably, China has lifted restrictions on personal crypto ownership, marking a significant policy change. Meanwhile, Brazil and Russia are exploring the use of Bitcoin as part of their reserves, highlighting its expanding role in the global economy. Analysts, drawing from historical post-halving performance, project that Bitcoin could reach a peak of approximately $150,000 by 2025 (read: Bitcoin to Hit $2,00,000 in 2025? ETFs in Focus).
As such, the cryptocurrency market is witnessing a surge in optimism as governments and institutions worldwide increasingly embrace blockchain technology. This shift is paving the way for broader adoption and investment in digital assets, fueling expectations of sustained growth in the years ahead.
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