The global digital asset market, particularly Bitcoin (BTC), is once again the focus of attention as President-elect Donald Trump prepares to take over the White House. BlackRock's ETF Director, Samara Cohen, has predicted optimistically that the crypto industry under Trump will witness another historic year for Bitcoin.
Altcoins are experiencing a strong upward trend along with Bitcoin, thanks to the President-elect Donald Trump's supportive commitments towards cryptocurrencies. On CNBC's "ETF Edge" program, Cohen emphasized that the upcoming FIT21 Act (Financial Innovation and Technology Act for the 21st Century) will create favorable conditions for the development of this industry.
She believes that the removal of cryptocurrency regulations will drive Bitcoin prices to new highs. She also expects progress in the development of stablecoins with a clearer classification system.
BlackRock's iShares Bitcoin Trust (IBIT) has recorded a 114% increase since its launch in January 2024 and is up nearly 8% to date. IBIT has become the fastest ETP to reach $10 billion AUM, just 2 months after its launch. BlackRock also introduced the Ether ETP on July 23, 2024, including the Shares Ethereum Trust ETF (ETHA).
Bitcoin has risen more than 50% in the past 90 days, pushing the price above the $100,000 mark. The cryptocurrency has set a new All-Time-High (ATH) of over $108,000 on December 17, 2024. At the time of writing, Bitcoin is trading at $104,391.
Despite the strong price surge, Cohen warned investors to be prepared for volatility:
"Bit is a risky asset. 15% fluctuations are not too large in this space. Long-term prices depend on the adoption rate".
BlackRock is also not slowing down, launching the iShares Bit ETF on the CBOE Canada this week. Meanwhile, Calamos Investments is preparing to launch a new ETF product that allows investors to access Bit without worrying about price risk.
In a recent post on LinkedIn, Cohen reiterated that it has been a year since the launch of the Bit ETP funds. These products have played a crucial role in building a bridge between cryptocurrencies and traditional finance. Bit ETP has provided greater access to digital assets for investors of all kinds. She also noted that the firm is seeing traditional investors opening brokerage accounts and using ETPs to access the crypto market.
Cohen affirmed that ETPs can help improve liquidity and price discovery for those parts of the market that still lack clarity. IBIT has quickly become an important liquidity tool, allowing both buyers and sellers to efficiently adjust their exposure to Bit in just a year.
According to data from SoSoValue, on January 17, Bit ETFs recorded inflows of over $979 million. Grayscale's GBTC ETF saw net inflows of $20.7 million, while BlackRock's IBIT recorded the highest net inflow of the day at $375 million. IBIT's cumulative capital inflow is now around $38.4 billion.
Cryptocurrencies are increasingly becoming a central issue in Washington as proponents and holders of digital assets prepare to shape US policy. President-elect Trump is expected to appoint crypto-friendly figures to key advisory roles. One notable name is billionaire Scott Bessent, who has been nominated for Treasury Secretary. Mr. Bessent views cryptocurrencies as "freedom" and has committed to divesting his BlackRock Bit ETF stake within 90 days of confirmation.
With these developments, the crypto market, particularly Bit, is witnessing strong signs of growth and increasing attention from major institutions.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
Join Telegram: https://t.me/tapchibitcoinvn
Twitter (X): https://twitter.com/tapchibtc_io
Tiktok: https://www.tiktok.com/@tapchibitcoin
Itadori
