The cryptocurrency market is going through what Bernstein analysts are calling a “new chaotic era,” all thanks to the unexpected success of President Donald Trump’s meme coin. Within just a few days of its Jan. 17 launch, the TRUMP token shot up to an eye-popping market capitalization of $14.5 billion, even surpassing Dogecoin (DOGEUSD) in trading volume.
The sudden rise of TRUMP, along with Bitcoin’s (BTCUSD) impressive jump past $104,000 on Inauguration Day, has stirred up both excitement and concern in the crypto world. Some see it as a worrying throwback to the speculative frenzy of the meme coin craze, while others believe it marks a turning point for making crypto more mainstream. Bitcoin’s market cap has now hit $2.018 trillion — an incredible 163.1% jump from last year.
Bernstein analysts believe this marks the start of a big shift in the crypto space. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT), is standing out as a strong contender, already managing over $50 billion in assets. With Trump’s meme coin shaking things up, let’s dive into the 1 ETF that could make the most of this moment.
Overview of BlackRock’s iShares Bitcoin Trust
BlackRock’s iShares Bitcoin Trust (IBIT) has made accessing cryptocurrency simpler and more efficient since its launch on Jan. 5, 2024. IBIT already has attracted $59 billion in managed assets, closely tracking Bitcoin’s price through the CME CF Bitcoin Reference Rate - New York Variant.
The fund’s performance speaks for itself. Trading just above $60, IBIT has delivered an impressive 168% gain over the past year and a solid 13% rise year-to-date.
Even in shorter timeframes it holds strong, with 6% growth in the last five days and 13.2% over the past month, supported by a healthy monthly trading volume of 45.7 million shares.
What makes IBIT stand out is its spot-based structure, which directly holds Bitcoin rather than relying on futures contracts or derivatives. This setup ensures precise tracking of Bitcoin’s price.
Security is another key feature of IBIT, as it partners with Coinbase Prime for custody services, ensuring institutional-grade safeguards for its holdings. Adding to its appeal is a competitive management fee of just 0.25%, or $25 on an initial $10,000 investment. This makes it cost-effective and accessible for market participants.
Combined with its high liquidity and direct exposure to Bitcoin’s price, IBIT offers a simple and cost-effective way to participate in the cryptocurrency market without dealing with futures or derivatives complexities.
Key Growth Drivers in the Post-Trump Crypto Landscape
The cryptocurrency market is going through a major shift as Trump’s inauguration on Jan. 20 kicked off what many are calling the start of a new crypto era. Bitcoin hit an all-time high above $109,000 during this time, showing just how much interest there is in digital currencies.
Things are moving quickly with pro-crypto figures stepping into important roles. Paul Atkins, Trump’s pick for SEC chair, is known for his supportive stance on cryptocurrencies, which is a big change from former SEC Chair Gary Gensler. On top of that, David Sacks, co-founder of PayPal (PYPL) and someone who’s been vocal about lighter crypto regulations, has taken on the role of AI and crypto czar. These appointments show the administration’s focus on encouraging innovation in the space.
The excitement has also been fueled by policy moves. Investors are watching closely as Trump’s administration is expected to release an executive order to create a crypto advisory council within 100 days.
Institutional interest is another key driver. BlackRock’s IBIT ETF has been performing well, and Bitcoin ETFs as a whole now hold about 6% of all Bitcoin in circulation. This growing demand from institutions has tightened supply, which could push prices even higher.
Looking ahead, there are more changes that could shake things. Trump’s administration has promised to block central bank digital currencies in favor of decentralized systems, and Ripple CEO Brad Garlinghouse has declared the start of a “Trump bull market.”
The shift in the market is clear from the numbers. With all these developments and policies lining up, many believe this could be the most exciting four years for cryptocurrency yet.
The Bottom Line
In conclusion, the crypto market is undeniably entering a transformative phase, driven by Trump’s pro-crypto policies and the unprecedented success of products like BlackRock’s IBIT ETF. With Bitcoin holding strong above $100,000 and IBIT accumulating over $50 billion in assets at record speed, institutional adoption is at an all-time high. Bernstein’s “new chaotic era” might feel unconventional, but it’s clear that this momentum is reshaping digital finance. As pro-crypto policies take center stage, the market is poised for further expansion, making IBIT a standout option.
