The crypto sphere has been in a state of euphoria since Donald Trump’s victory in the United States, marked by a surge in investments in Bitcoin. To everyone’s surprise, even BlackRock, the giant in asset management, sees its Bitcoin ETF surpass its gold fund in terms of assets. The rush towards Bitcoin ETFs reflects a redistribution of financial interests where cryptocurrencies gradually dethrone traditional havens. Let’s delve into this revolution that is shaking up the market.

Bitcoin Soars: BlackRock Surfs the Wave with a Record ETF

The sudden success of the BlackRock Bitcoin ETF matches the growing appetite of investors for BTC, especially since Trump’s election has breathed a wind of optimism into the sector. Launched in January 2024, the iShares Bitcoin Trust (IBIT) has managed to amass over 33 billion dollars in assets, thus surpassing the iShares Gold Trust (IAU), which has been in place since 2005.

A feat praised by Nate Geraci, president of The ETF Store, who describes this rise as “absolutely astounding ” – and for good reason!

The numbers are eloquent:

• 1.1 billion dollars inflow in a record day on November 7;
• 27 billion in net inflows since January 2024;
• A total asset of 34.3 billion dollars, crushing the IAU and its 33 billion.

The massive arrival of capital highlights a major change: Bitcoin is gaining legitimacy among both institutional and individual investors, relegating gold to the background. For some, this even marks the entry of BTC into the exclusive club of safe-haven assets.

Crypto Market: Towards an Era of Bitcoin ETFs

The impact of the U.S. presidential election is not limited to Bitcoin’s success. Indeed, the Trump administration seems favorable to an environment more conducive to financial innovations, encouraging a series of new crypto products awaiting approval.

In the context of this “Trump rally”, six of the ten most successful ETFs of 2024 are Bitcoin ETFs, among about 400 new launches this year. A real springboard for the diversity of crypto ETFs to come, with proposals including even token baskets.

The appeal of Bitcoin ETFs is also explained by economic factors: the Federal Reserve recently lowered interest rates by 25 basis points, encouraging investors to turn to riskier assets. As noted by André Dragosch from Bitwise:

“Since Bitcoin ETFs became operational, inflows have surpassed those of gold by tenfold before even the first year elapsed.”

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

In summary, while Bitcoin now surpasses gold in BlackRock’s portfolio, let’s remember that gold itself was leading a rally two weeks ago, keeping BTC in suspense.