The iShares Bitcoin Trust (IBIT) of BlackRock recorded the highest daily trading volume to date, reaching $4.1 billion on Wednesday evening, as Bitcoin prices reached a new all-time high. The strong surge of Bitcoin at the beginning of the US presidential election race, with prices exceeding $75,000 immediately after Donald Trump's victory and reaching a new peak at $76,412, has driven the Bitcoin ETFs in the United States, including IBIT.
According to Eric Balchunas, a senior analyst at Bloomberg, IBIT recorded $1 billion in trading volume within the first 20 minutes after the market opened. This strong initial growth is in line with IBIT's typical daily trading volume, setting the stage for the strongest trading session since its launch on January 11.
"To give you an idea, this trading volume is even larger than some prominent stocks like Berkshire, Netflix, and Visa today."
This unprecedented activity reflects the growing confidence in the cryptocurrency products of major institutions, in the context of Trump's victory, who has pledged to reform regulations and drive the strong development of the cryptocurrency industry.
Although IBIT outperformed its competitors on that day, the total trading volume of Bitcoin ETFs across the market also reached $6 billion. Data from CoinGlass shows that the medium daily trading volume of Bitcoin ETFs traded in the United States has nearly doubled, indicating the market's excitement following the election results.
Donald Trump's campaign commitments, including the establishment of a national Bitcoin reserve fund, support for cryptocurrency Miners, and the formation of an advisory board to manage the industry, have bolstered investors' confidence in the future of cryptocurrencies. His victory has also sparked optimism about the potential for changes in the leadership of the US Securities and Exchange Commission (SEC), opening the door to more crypto-friendly policies.
Some experts, including Matt Hougan, Chief Investment Officer of Bitwise, believe that Trump's victory could be a catalyst for a "golden age" for cryptocurrencies. Bitwise is one of 11 companies that have brought spot Bitcoin ETFs to the US market this year.
With around 429,185 BTC worth $30 billion, IBIT is currently the largest Bitcoin ETF in the United States. The competitive 0.12% fee in the first year for assets up to $5 billion has helped IBIT attract significant attention from investors since its launch in January.
With the strong rise of Bitcoin and the support of Trump's crypto-friendly policies, Bitcoin ETFs are entering a new phase, with the participation of institutional investors and record trading volumes.
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