The Bitcoin ETF market in the United States is on the verge of recording a monthly record for net inflows, with $6.2 billion raised in November, according to Bloomberg data. This milestone coincides with Bitcoin’s historic rise toward $100,000, fueled by President-elect Donald Trump’s support for cryptocurrencies.
Bitcoin and political support boost the market
Bitcoin’s recent rise, which took it to $99,700, has captured the attention of global investors. Trump’s promise to repeal the Biden administration’s restrictions and ease crypto regulation has been key to this boom. In addition, the elected president supports the creation of a national strategic reserve of Bitcoin, consolidating his change of position towards the sector.
Josh Gilbert, market analyst at eToro, said:
«Under the Trump administration, it will be easier for companies and retirement funds to acquire this asset. “This will continue to attract flows into ETFs.”
New products and a change in regulation
ETFs from issuers such as BlackRock and Fidelity Investments have benefited the most. The previous monthly peak of $6 billion, reached in February, is now surpassed by growing interest in these products, especially following the launch of Bitcoin and Ethereum-based ETFs earlier this year.
Regulatory change has also played a fundamental role. The Securities and Exchange Commission (SEC), under the leadership of Gary Gensler, reluctantly approved spot Bitcoin ETFs following a court decision in 2023. However, with Gensler’s departure and the possible arrival of a pro-leader crypto under the Trump administration, the door opens to ETFs based on other cryptocurrencies.
An outstanding year for Bitcoin
So far in 2024, Bitcoin has doubled in value, outperforming traditional assets like gold and global stocks. Furthermore, smaller capitalization cryptocurrencies, such as Cardano (ADA) and Solana (SOL), maintain their stability, while Ethereum is positioned as the second most influential asset in the market.
With the prospect of a friendlier regulatory environment, the crypto ETF market appears poised for even further expansion in the coming months. The combination of political support, financial innovation, and growing institutional interest could usher in a new era for cryptocurrencies.
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