Bitcoin ETFs and crypto stocks notched an impressive $38 billion in trading volume this week as investor excitement surged following Donald Trump’s election victory. Bitcoin itself hit a new all-time high of $89,000 on Tuesday, with exchange-traded funds (ETFs) and related stocks such as MicroStrategy and Coinbase following suit in their own record-breaking rallies.
Senior ETF analyst at Bloomberg, Eric Balchunas, captured the sentiment perfectly, describing the surge in trading activity as “Volmageddon.” Investors, eager for returns, have pushed the volume of Bitcoin ETFs and crypto stocks to unprecedented levels. “Investors are looking for a little excitement,” Balchunas said in an interview with Bloomberg Television. Given the figures, that might be an understatement.
The rally has also drawn attention to Bitcoin ETFs as a new favorite for investors. Currently holding net assets of $90.6 billion, some analysts, including Balchunas, believe Bitcoin ETFs could eventually grow to two or three times the value of gold ETFs, which are currently worth $286 billion. The largest of these, BlackRock’s IBIT Bitcoin ETF, alone accounted for $4.7 billion in trading volume on Monday, highlighting its role in driving market momentum.
Bitcoin’s 2024 performance has been nothing short of meteoric, soaring by 110% since January, according to CoinGecko. Ethereum also posted gains of 44%, with institutional investors contributing to the rally. On Monday alone, a record $295 million was invested into Ethereum ETFs, reversing previous negative performance trends and underscoring renewed interest in alternative cryptocurrencies.
The total value of the cryptocurrency market surged to over $3 trillion this week, marking another historic high. Data from Farside shows that U.S. Ethereum ETFs have been seeing daily inflows of over $500 million since Trump’s victory on November 5, further fueling the bullish sentiment in the crypto space.
The enthusiasm has extended to U.S. crypto stocks, with companies like Coinbase and MicroStrategy enjoying significant gains. MicroStrategy’s stock price has surged by 396% this year, reaching a new high of $340—a remarkable achievement after 24 years in business. For crypto enthusiasts and investors alike, this historic rally marks a turning point, with Bitcoin leading the charge and pushing related sectors into new territory.