Trump Victory Ignites Bitcoin Frenzy: Price Breaks $80,000, Institutional Funds Flood In

Trump Victory Ignites Bitcoin Frenzy: Price Breaks $80,000, Institutional Funds Flood InBuoyed by Donald Trump's election victory, Bitcoin continued its surge after breaking through the $80,000 mark, setting a new all-time high. On November 11, it briefly reached $81,899

Trump Victory Ignites Bitcoin Frenzy: Price Breaks $80,000, Institutional Funds Flood In

Buoyed by Donald Trump's election victory, Bitcoin continued its surge after breaking through the $80,000 mark, setting a new all-time high. On November 11, it briefly reached $81,899. As of 4:15 PM that day, the price stood at $81,300, marking an over 17% increase from November 5. Continued influx of funds has fueled Bitcoin's price rise. Data from Bosera International shows that US spot Bitcoin ETFs have witnessed five consecutive weeks of net inflows, reflecting changing market sentiment.

The top 10 US spot Bitcoin ETFs saw net inflows last week (November 4-8), attracting $1.606 billion in capital. Major spot Bitcoin ETFs, including iShares, Fidelity, and Bitwise, all saw significant net capital inflows. Following Trump's victory and the Republican majority in the Senate, overseas institutions are calling for Bitcoin to reach $100,000 and $125,000, with some, like Standard Chartered Bank's digital asset researchers, predicting it to hit $200,000 by the end of 2025.

The "Trump Trade" was first evident in the virtual currency market and is seen as a long-term positive for the cryptocurrency industry, including through executive orders and legislation to support its development. Additionally, the market's effectiveness and mainstream adoption are also positive factors.

Policy initiatives that the Trump administration may push for include more crypto-friendly legislation and potentially tax breaks, which could further drive cryptocurrency adoption and acceptance.

Hong Kong Virtual Currency ETFs Soar

On November 11, Hong Kong-listed virtual currency ETFs led the gains. By the close of the Hong Kong market, the Huaxia Ethereum ETF, Bosera Ethereum ETF, Southern Ethereum ETF, GF Ethereum ETF, and Huaxia Bitcoin ETF all recorded gains exceeding 7%, even reaching 8%. Looking at a longer time frame, Bitcoin-related ETFs have witnessed over 30% gains in the past 60 days, with the highest reaching nearly 38%. Over the past 60 days, Bitcoin ETFs have significantly outperformed Ethereum ETFs, with the latter's gains roughly half that of Bitcoin ETFs.

It's worth noting that Southern Asset Management's subsidiary, Southern AET, was one of the first to introduce virtual currency futures ETFs in Hong Kong. The Southern Bitcoin Futures ETF and Southern Ethereum Futures ETF both launched on December 16, 2022. Southern AET is also the only company to offer a 1x inverse leveraged Bitcoin futures ETF, which debuted on July 23, 2024.

On April 24 this year, the first batch of Hong Kong Bitcoin and Ethereum spot ETF applications from Huaxia Fund, Bosera Fund, and GF Fund's Hong Kong subsidiaries received official approval from the Hong Kong Securities and Futures Commission, marking a "milestone in Hong Kong's financial history." On April 30, the six products were listed on the Hong Kong Stock Exchange. Upon the launch of the six virtual currency ETFs from Huaxia, Bosera, and GF's Hong Kong subsidiaries, analysts predicted that the asset management scale of Hong Kong spot Bitcoin and Ethereum ETFs could reach $1 billion. According to Cailian Press, as of November 11, the total asset size of the 18 currently listed virtual currency ETFs in Hong Kong has reached HK$1.036 billion.

Institutions Remain Bullish on Bitcoin

On November 6, Bitcoin's market capitalization surpassed Meta, making it the ninth largest asset globally. According to CoinMarketCap, as of November 8, the global cryptocurrency market cap reached $2.68 trillion, with Bitcoin accounting for 59.9% and Ethereum for 13.9%.

IBIT, the BlackRock Bitcoin Fund, witnessed its largest trading volume on November 7, reaching $4.1 billion, surpassing the daily trading volume of stocks such as Berkshire Hathaway, Netflix, and Visa. The stock surged 10%, marking its second-best performance since listing. Subsequent data revealed that the BlackRock Bitcoin Fund IBIT received net subscriptions of $1.1 billion on the day of its record trading volume, surpassing the size of its flagship gold fund, IAU.

BlackRock's Bitcoin ETF launched in January this year, and in just nine months, it has attracted $27 billion in capital inflows. In a side-by-side comparison of fund holdings, the gap between BlackRock Bitcoin Fund IBIT's Bitcoin holdings and Grayscale's GBTC Bitcoin holdings has widened. As of November 8, GBTC holds 219,200 Bitcoins, while IBIT holds 447,200 Bitcoins, demonstrating BlackRock's bullish stance on Bitcoin.

Bitcoin underwent its halving event in April, a biannual event that typically acts as a positive catalyst for short-term bull runs. However, after this year's halving, the market exhibited significant divergence, with JPMorgan issuing a warning about potential declines. Conversely, Standard Chartered Bank believes that geopolitical factors could propel Bitcoin to $150,000 by year-end.

The "Trump Trade" has further solidified institutional bullish sentiment towards Bitcoin. Several overseas institutional analysts have shared their views on the continuation of the rally, predicting Bitcoin to reach between $100,000 and $125,000 by year's end.

Bosera International stated that Bitcoin is currently in its fourth cycle, and they expect it to be in the early stages of this cycle. Continued price resilience is expected to hinge on increasing US Fed rate cut expectations or continued institutional participation. They maintain a bullish outlook for the medium to long term.