BlackRock Bitcoin ETF Sees Record $4.1B Trading Surge Following Trump’s Election Victory

Following Donald Trump’s victory in the 2024 U.S. Presidential Election, BlackRock’s Bitcoin ETF (IBIT) experienced a dramatic surge in trading volume, reaching an unprecedented $4.1 billion on November 6. This surge was part of a broader rally in Bitcoin’s price, which hit an all-time high of $76,500 before settling at $74,802, a slight dip of 2.2% from its peak.

Key Takeaways:

• BlackRock’s IBIT saw over $4.1 billion in trading volume on November 6, marking its highest volume day ever.
• Bitcoin’s price surged to a new all-time high of $76,500 following Trump’s win, reflecting positive market sentiment.
• Despite the surge in Bitcoin ETFs, some international ETFs, including iShares funds in South Korea, Taiwan, and Chile, saw declines.
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Record Trading Volume for BlackRock’s Bitcoin ETF

BlackRock’s Bitcoin ETF experienced an explosive increase in trade volume after Trump’s election victory. On November 6, the ETF saw $4.1 billion in trades, a volume greater than that of major stocks like Berkshire Hathaway, Netflix, and Visa, according to Eric Balchunas, Senior ETF Analyst at Bloomberg. This marked the second-best trading day for IBIT since its launch.

Balchunas highlighted the scale of the trading surge, referring to it as the "biggest volume day ever" for the ETF. He further revealed that Bitcoin ETFs collectively traded $6 billion, a record high since the early days of the ETF market in January. The massive volume also showed that most Bitcoin ETFs traded at double their usual volumes, signifying the high level of market activity.

Bitcoin Reaches New Heights

Along with the surge in ETF volume, Bitcoin's price also hit new highs. On November 6, Bitcoin's price spiked to $76,500, marking a new all-time high. Although the price has slightly retreated to $74,802, the bullish momentum following Trump’s election victory is evident, fueling optimism in the crypto market.

Global Market Reactions and ETF Performance

While the U.S. Bitcoin ETFs surged, some international ETFs, particularly iShares funds in South Korea, Taiwan, and Chile, saw declines despite U.S. stock indices reaching new record highs. This divergence highlights the potential for varying market responses globally, especially with Trump's proposed policies on tariffs and imports.

Analysts are hopeful that Trump's win will lead to favorable crypto policies in the U.S., which could boost not just Bitcoin, but other digital assets as well. However, the global market could face challenges, especially in regions vulnerable to potential tariff increases, particularly from China. Yung-Yu Ma, Chief Investment Officer at BMO Wealth Management, noted that while U.S. markets remain positive, global equities, especially in international markets, could face headwinds in the near term due to the president-elect’s proposed policies.

Conclusion

The record surge in trading volume for BlackRock’s Bitcoin ETF following Trump’s election victory underscores the strong market optimism surrounding cryptocurrency, particularly Bitcoin. As the crypto market continues to react to the new political landscape, Bitcoin and other digital assets are expected to experience continued interest and growth, while global markets may face challenges from changing trade policies.