Leading up to Election Day, bitcoin was one of this year’s best-performing assets, easily trouncing stocks and bond. That explains why the VanEck Bitcoin ETF Trust (HODL) is among this year’s most successful rookie ETFs.
In what is obviously good news for HODL and its counterparts, the largest cryptocurrency has been in rally mode since the election, trading above $90,000 as of late Thursday. For the month ending November 13, HODL hauled in $80.12 million in new assets, bringing its assets under management tally to $1.17 billion. That’s impressive work for an ETF that debuted 10 months ago.
And HODL and friends could generate more near-term upside. That’s because the election results are viewed as crypto-friendly. It’s also because the cryptocurrency is closing in on the psychologically important $100,000 level.
HODL More Than Hype
Some market observers forecast the “Trump bump” for bitcoin. That has lifted ETFs such as HODL in the process. Nigel Green of deVere Group said prior to the election that a victory by now President-elect Trump could stoke a bitcoin rally that would carry the digital currency to $80,000. That thesis has been validated and six figures is now a realistic expectation for bitcoin.
“We expect that this is just the beginning, with the cryptocurrency set to break more records under an incoming Trump administration,” noted Green. “President-Elect Trump’s crypto-friendly stance signals a transformative moment for Bitcoin and the broader digital asset market.”
Expectations are in place that the incoming Trump administration wants the U.S. to maintain and expand its perch as a cryptocurrency leader. That means it will prioritize regulating the space in such a way that doesn’t threaten innovation.
As Green pointed out, lack of consistent regulations have hindered broader crypto adoption. But the debuts of ETFs such as HODL and the VanEck Ethereum ETF (ETHV) have signaled U.S. regulators are increasingly comfortable with larger cryptocurrencies in ETF form. Should Trump appoint crypto-friendly folks to the SEC and other financial regulatory agencies, it’s possible more professional investors will become comfortable with crypto and use ETFs to express their bullishness.
“Clarity in policy paves the way for confidence in the market,” added Green. He believes bitcoin can ascend to $100,000 by the end of January. “With clear, supportive regulations, we expect institutional capital to pour into crypto like never before. Bitcoin, being the most established digital asset, stands to gain the most from this influx.”
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