Bitcoin ETFs Soar, Crypto Surges Post-Trump Victory

Crypto-focused ETFs jumped higher Wednesday after Donald Trump secured the presidency, with bitcoin soaring to $74,851.

A 6.5% surge over the past 24 hours, according to CoinMarketCap data, lifted both spot cryptocurrency ETFs and funds targeting crypto-related companies.

The iShares Bitcoin Trust (IBIT), the largest spot bitcoin ETF with about $26 billion in assets, rose 7.1%, according to etf.com data, while the Grayscale Bitcoin Trust (GBTC) by market value, spiked nearly 10%. 

The Trump victory could mark a pivotal shift for cryptocurrency markets as his administration is expected to create “an environment ripe for Bitcoin’s continued rise” through favorable legislation, crypto-friendly regulation, and macroeconomic conditions that favor alternative assets, according to James Butterfill, head of research at CoinShares.

Trump Triumph Sparks Crypto Resurgence

In an X post, Eric Balchunas, Senior ETF Analyst at Bloomberg, said, “...$IBIT has seen $1b in volume in the first 20min—that's about what it does in full day. Other bitcoin ETFs in same boat, crazy volume. Set for a record-breaking volume day (and given price is up so much, this is likely feeding frenzy volume vs crisis volume = look for inflows this week.)"

Other spot bitcoin ETFs also gained, with the Valkyrie Bitcoin Fund (BRRR) climbing 7.5% and the Fidelity Wise Origin Bitcoin Fund (FBTC) up 7.1%.

Bitcoin’s New Era Under Trump

Crypto-related company ETFs posted even stronger performance. The Valkyrie Bitcoin Miners ETF (WGMI), which invests in companies deriving at least 50% of revenue from bitcoin mining operations, surged 15.6%, according to etf.com data.

The Bitwise Crypto Industry Innovators ETF (BITQ), tracking companies supporting cryptocurrency markets, jumped 14.2%, while the Invesco Alerian Galaxy Crypto Economy ETF (SATO) gained 11.7%.

Meanwhile, MicroStrategy-focused products moved strongly, with the Defiance Daily Target 2x Long MSTR ETF (MSTX) soaring 21%. MicroStrategy holds 252,220 bitcoins valued at $16 billion as of Sept. 30, the company said.

The election outcome could accelerate institutional adoption of cryptocurrency, Butterfill wrote in his analysis.

A key catalyst would be the proposed Bitcoin Act under Trump, which could establish bitcoin as a strategic reserve asset, with the U.S. government potentially acquiring up to 5% of the asset’s total supply, Butterfill explained.

This shift, combined with Trump’s criticism of current Securities and Exchange Commission leadership, could usher in more crypto-friendly regulators and boost mainstream acceptance of digital assets, according to Butterfill.

“Despite record inflows of $29 [billion] this year, institutional adoption remains low in the broader financial market,” he noted. “With favorable policies from the Trump administration, more institutional investors are likely to view Bitcoin as a viable portfolio component.”

Ethereum-focused ETFs also rallied, with the iShares Ethereum Trust (ETHA) gaining 9.7% and the Fidelity Ethereum Fund (FETH) rising 10%. Ethereum traded up 8.1% at $2,653, CoinMarketCap data showed.

The broader crypto ETF landscape has seen record inflows this year, with spot bitcoin ETFs attracting more than $23.5 billion since their January launch, according to U.K. asset manager Farside Investors.