Donald Trump, viewed as a pro-crypto candidate during the campaign, secured a second tenure as the 47th President of the United States after winning all seven swing states and a decisive majority in the 2024 election. This resulted in Bitcoin surging about 16% since the election results (as of Nov. 11).
Trump had pledged to position the United States at the forefront of the digital asset industry, transforming it into the “crypto capital of the world.” In his election campaign, Trump proposed creating a strategic Bitcoin reserve and introducing regulations supportive of digital assets.
Momentum Builds as Bitcoin Eyes New Heights
Bitcoin has surged around 101% since the start of the year (as of Nov. 11), driven by strong demand for U.S.-based ETFs and interest rate cut by the Fed in September. The Fed initiated its first rate cut in September 2024, followed by a second cut in November, fueling further bullish momentum in cryptocurrency.
The greenback's value tends to move inversely with the Fed’s interest rate adjustments, resulting in decreased demand for the currency and creating opportunities in digital currencies. Investors may view Bitcoin as an alternative to the depreciating dollar.
Moreover, Fed rate cuts also boost risk-on sentiments, helping Bitcoin prices and pushing it into bullish territory. Rising retail investor interest, coupled with the ongoing institutional buying is also driving the momentum.
According to Crypto Briefing, Google Trends data reveals a surge in Bitcoin search interest, peaking at 100 during Trump’s recent electoral victories. Daily search volumes have been steadily rising, indicating a resurgence in retail interest in the crypto market.
Traders and analysts alike, as quoted on CNBC, believe this rally is only just beginning, with many investors forecasting Bitcoin prices to breach the $100,000 mark by the end of the year.
ETFs to Consider
Below, we have mentioned a few ETFs for investors to increase their portfolios’ exposure to digital currencies, positioning themselves to benefit from both the U.S. presidential election results and the long-term bullish trend in digital assets.
For investors with a long-term horizon, increasing exposure to the digital asset now and following a momentum investing strategy can be a smart investment strategy as cryptocurrency still has room for substantial momentum and further gains in the coming periods.
IShares Bitcoin Trust (IBIT)
IShares Bitcoin Trust charges an annual fee of 0.25% and has gathered an asset base of $32.86 billion.
IShares Bitcoin Trust has gained 11.02% over the past month and 6.86% over the past three months. The fund has gained about 25% since the election results (as of Nov. 11).
Grayscale Bitcoin Trust (GBTC)
Grayscale Bitcoin Trust charges an annual fee of 1.5% and has gathered an asset base of $16.71 billion. Investors can also look at Grayscale Bitcoin Mini Trust BTC which charges a comparatively cheaper annual fee of 0.15%.
Grayscale Bitcoin Trust has gained 10.14% over the past month and 79.34% over the past year. The fund has gained about 26% since the election results (as of Nov. 11).
Fidelity Wise Origin Bitcoin Fund (FBTC)
Fidelity Wise Origin Bitcoin Fund charges an annual fee of 0.25% and has gathered an asset base of $14.26 billion.
Fidelity Wise Origin Bitcoin Fund has gained 10.79% over the past month and 7.02% over the past three months. The fund has gained about 26% since the election results (as of Nov. 11).
ARK 21Shares Bitcoin ETF (ARKB)
ARK 21Shares Bitcoin ETF charges an annual fee of 0.21% and has gathered an asset base of $3.66 billion.
ARK 21Shares Bitcoin ETF has gained 11.02% over the past month and 6.86% over the past three months. The fund has gained about 26% since the election results (as of Nov. 11).
Bitwise Bitcoin ETF Trust (BITB)
Bitwise Bitcoin ETF Trust charges an annual fee of 0.20% and has gathered an asset base of $3.18 billion.
Bitwise Bitcoin ETF Trust has gained 11.02% over the past month and 6.87% over the past three months. The fund has gained about 25% since the election results (as of Nov. 11).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
