Bitcoin reached new heights this week, hitting an all-time high after Donald Trump's election victory on Nov. 6. The flagship cryptocurrency surged to $76,191, before stabilizing around $74,900, according to CoinMarketCap data. 

This rally came alongside a record-breaking day for BlackRock’s iShares Bitcoin Trust (IBIT), which set a new trading volume record of over $4.1 billion on Wednesday.

Trump’s Victory Boosts Crypto Markets

Trump’s re-election is seen as a major catalyst for the latest surge in crypto prices. Sylvia Jablonski, CEO of Defiance ETFs, explained that the Trump administration’s stance on crypto favors risk assets and encourages growth in the digital asset space. 

“The themes around the Trump trade for crypto are deregulation, potential tax cuts for an asset that is both held long term but also day traded, less dependency on parts of government like financial institutions and the Fed — or at least an alternative for decentralized currency — and overall support of risk assets and the growth of crypto ... is really what’s making it grow,” Sylvia Jablonski told CNBC.

Trump’s promises to make the U.S. a "Bitcoin superpower" and his plans to fire SEC Chairman Gary Gensler, who has been a vocal critic of the crypto industry, have been welcomed by crypto advocates.

Record-Breaking IBIT Trading Volume

BlackRock’s iShares Bitcoin Trust (IBIT) had a monumental day on November 6, setting a trading volume record of $4.1 billion, surpassing even well-known stocks like Berkshire Hathaway, Netflix, and Visa. 

Eric Balchunas, a Bloomberg ETF analyst, pointed out that this was the "biggest volume day ever" for IBIT, which also saw a 10% increase in value, marking its second-best trading day since launch. 

Other Bitcoin ETFs also experienced a significant uptick in trading, with many funds seeing double their average volume. In fact, Bitcoin ETFs have dominated the ETF landscape in 2024, with six of the top 10 most successful ETF launches this year being Bitcoin-focused.

Worth noting, Bitcoin spot ETFs saw $622 million in net inflows on Nov. 6 while Ethereum spot ETFs saw $52.3 million inflows.

Analysts believe that Trump’s victory could pave the way for a wave of new crypto ETFs. So far, 2024 has seen an influx of regulatory filings for ETFs that hold altcoins like Solana, XRP, and Litecoin. These filings point to increasing institutional interest in diversifying portfolios beyond Bitcoin and toward a more varied basket of cryptocurrencies.

There is also anticipation surrounding the approval of crypto index ETFs, which would hold a mix of digital assets.