the crypto market in turmoil after the election of Trump

The cryptosphere has been in full euphoria since Donald Trump's victory in the United States, marked by a surge in investments in Bitcoin. To everyone's surprise, even BlackRock, an asset management juggernaut, saw its Bitcoin ETF outperform its gold fund in terms of assets. The rush for Bitcoin ETFs reflects a redistribution of financial interests where cryptocurrencies are gradually dethroning traditional refuges. Let’s take a closer look at this revolution that is shaking up the market.

Bitcoin is soaring: BlackRock rides the wave with a record ETF

The dazzling success of BlackRock’s Bitcoin ETF matches the growing appetite of investors for BTC, especially since the election of Trump has breathed a wave of optimism into the sector. Launched in January 2024, the iShares Bitcoin Trust (IBIT) has managed to accumulate over $33 billion in assetsthus surpassing the iShares Gold Trust (IAU), in place since 2005.

A feat hailed by Nate Geraci, president of The ETF Store, who describes this rise as “ totally astonishing » – and for good reason!

The figures speak for themselves:

• $1.1 billion in inflow in a record day on November 7;
• 27 billion net admissions since January 2024;
• Total assets of $34.3 billion, dwarfing the $33 billion IAU.

The massive influx of capital underlines a major change: Bitcoin is gaining legitimacy among institutional investors and individuals alikerelegating gold to the background. For some, this even marks the entry of BTC into the exclusive club of safe havens.

Crypto market: towards an era of Bitcoin ETFs

The impact of the US presidential election is not limited to the success of Bitcoin. Indeed, the Trump administration seems favorable to a climate more conducive to financial innovationsencouraging a series of new crypto products awaiting approval.

As part of this “Trump rally”, six of the ten most successful ETFs of 2024 are Bitcoin ETFsamong around 400 new launches this year. A real springboard for the diversity of crypto ETFs to come, with proposals even including baskets of tokens.

The appeal of Bitcoin ETFs can also be explained by economic factors: the Federal Reserve recently lowered interest rates by 25 basis pointsencouraging investors to turn to riskier assets. As evidenced by this remark from André Dragosch of Bitwise:

« Since Bitcoin ETFs went live, inflows have outpaced gold by ten times before the first year was over ».

Thus, crypto funds continue to grow, BlackRock making up 42% of the $78.5 billion in BTC funds in the United States. This surge echoes a demand for alternative assets alongside traditional products.

In short, while Bitcoin now outperforms gold in BlackRock's portfolio, remember that gold, too, led a rally two weeks ago, keeping BTC in suspense.