BlackRock Bitcoin ETF (IBIT) crossed the trading volume of VISA and Berkshire Hathaway stocks yesterday as Donald Trump was elected as the 47th US President, makin the crypto market specially DeFi tokens to rally. IBIT’s daily trading volume reached $621 million, its highest as the votes for the US presidential elections were counted.
This increase in BlackRock’s trading volume was due to huge spot Bitcoin ETF inflows after Trump’s victory on November 6. BlackRock’s BTC ETF crossed its previous best of $4.1 billion trading volume yesterday. This was more than the trading volume of major stocks like Netflix, Visa and Berkshire Hathaway.
IBIT shares also increased by 10% as the news of Trump’s win broke out, This is the second-best performance of BlackRock’s Bitcoin ETF since its launch. Analysts are predicting a spike in inflows in the upcoming days due to this sudden rise in transaction volume. This suggests that crypto investors are interested in IBIT and that the fund has gained the market’s confidence.
The nine US Bitcoin ETFs performed exceptionally well on the US election results day as the their total trading volume went beyond $6 billion, their highest single-day performance since January. Most of the BTC ETFs trading activity double from their daily average as Trump won the election, showcasing the interest of crypto investors in emerging asset class. This led to analysts terming November ‘the banger day’ for ETFs.
While Fidelity Bitcoin ETF (FBTC) led the pack with $300 million inflows, other players like Grayscale (BTC), Ark Invest (ARKB) and Bitwise (BITB) were not that far behind. ARKB was the second best with $127 million inflows followed by BITB and Grayscale with $100.9 million and $100 million inflows. However, despite strong trading volumes, BlackRock only experienced $68 million inflows yesterday.
The Bitcoin ETFs inflows are likely to surge again when Trump takes charge of the White House in January. Many analysts are predicting that it will be a new dawn for BTC as the Trump administration takes over, as seen in Bitcoin reaching a new all-time high of over $76000 yesterday.
According to Bitcoin strategist Dylan LeClair the crypto market has 3 months before the new US governments puts into “law active accumulation of bitcoin as a strategic reserve asset” while the other soverigns are front-running in this department. Hence, the clock is ticking for the US government.
Nearly 20 hours after the US election results, BTC was still holding strongly above the $75000 mark which indicates that investors are waiting for the federal rate cut announcement. A 25 basis point rate cut could lead to new highs for Bitcoin and crypto investors have been anticipating a $100,000 rally.
As of November 7 evening, BTC has rose 2.38% in 24 hours of Trump’s victory to reclaim the $76,336 mark while its trading volume has declined by 41.22% to reach $64.47 billion and market cap stands at $1.51 trillion.