In the 2024 U.S. presidential election, Donald Trump won a second term, promising to make the U.S. the “crypto capital of the world” with policies like a strategic Bitcoin reserve. Following his victory, Bitcoin prices surged, attracting significant investor interest. This article explores how Trump’s re-election impacts Bitcoin prices and highlights key Bitcoin-related ETFs.
Trump’s Impact on Bitcoin
Since Trump’s victory, Bitcoin has risen by around 16% (as of November 11), driven by his pro-crypto campaign promises. His vision for the U.S. to lead in digital assets has boosted market expectations, further fueling Bitcoin’s rally.
Additionally, Bitcoin has seen impressive growth in 2024, rising 101% since January 1 (as of November 11). This surge is partly due to Trump’s win and the Federal Reserve’s interest rate cuts in September and November, which have increased investor appetite for riskier assets like Bitcoin.
Bitcoin and the Dollar’s Inverse Relationship
The Fed’s rate cuts typically weaken the U.S. dollar, making Bitcoin an attractive hedge for investors. As a result, Bitcoin has become a favored asset for those looking to protect against dollar depreciation. These rate cuts have also driven greater risk-taking, contributing to Bitcoin’s price rise.
Recent data shows a surge in retail investor interest in Bitcoin, with search volumes spiking after Trump’s win. This suggests Bitcoin’s momentum could continue, potentially pushing its price over $100,000 in the near future.
Top Bitcoin ETFs to Consider
For investors looking to gain exposure to Bitcoin, ETFs offer a convenient option. Here are some top Bitcoin-related ETFs to watch:
iShares Bitcoin Trust (IBIT)
Expense Ratio: 0.25%
AUM: $32.86B
1-Month Performance: +11.02%
Post-Election Performance: +25%
A low-cost ETF that tracks Bitcoin’s price, ideal for long-term investors.
Fidelity Wise Origin Bitcoin Fund (FBTC)
Expense Ratio: 0.25%
AUM: $14.26B
1-Month Performance: +10.79%
Post-Election Performance: +26%
Attractive for investors who believe in Bitcoin’s long-term potential.
ARK 21Shares Bitcoin ETF (ARKB)
Expense Ratio: 0.21%
AUM: $3.66B
1-Month Performance: +11.02%
Post-Election Performance: +26%
A flexible Bitcoin ETF managed by ARK Invest, appealing for higher-risk investors.
Bitwise Bitcoin ETF Trust (BITB)
Expense Ratio: 0.20%
AUM: $3.18B
1-Month Performance: +11.02%
Post-Election Performance: +25%
Known for its low fees and solid performance, ideal for cost-conscious investors.
Conclusion
Trump’s re-election and Bitcoin’s price surge offer significant opportunities for investors. With the Fed’s rate cuts and Trump’s crypto-friendly policies, Bitcoin’s upward momentum is likely to continue. Bitcoin ETFs provide an efficient way to participate in this trend while managing risk and costs.
Investors should keep an eye on these ETFs and choose those that align with their investment goals and risk tolerance as the market continues to evolve.
$iShares Bitcoin Trust(IBIT)$ $Fidelity Wise Origin Bitcoin Fund(FBTC)$ $ARK 21Shares Bitcoin ETF(ARKB)$ $Bitwise Bitcoin ETF(BITB)$
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