The demand for the world’s biggest Bitcoin fund is another sign of how Trump’s pledge to put the US at the center of the digital-asset industry is reshaping the crypto market. The largest token — now viewed as a quintessential so-called Trump trade — surged to a record high of US$76,956 on Thursday.
Caroline Bowler, chief executive officer of crypto exchange BTC Markets Pty, said there is a “significant risk of a feedback loop, where rising ETF inflows push Bitcoin prices higher, attracting more capital”.
Much depends now on Trump following through on campaign vows, such as creating a strategic Bitcoin stockpile and appointing regulators enamored with digital assets. Some technical indicators suggest a two-month rally driven by optimism about Trump’s reelection is now due for a pause.
See also: Alexander Hamilton’s three lessons for stablecoins
Bitcoin was steady at about US$76,000 as of 6.35am Friday in London. The cryptocurrency’s roughly 80% advance so far in 2024, partly fueled by Federal Reserve interest-rate cuts, exceeds the returns from traditional investments such as global stocks and gold.
Chart: Bloomberg
