Photo credit: www.cnbc.com

BlackRock Forecasts Bitcoin Surge Post-Trump Inauguration

As the cryptocurrency landscape continues to evolve, BlackRock’s chief investment officer for ETFs and index instruments, Samara Cohen, has expressed optimism regarding Bitcoin’s potential growth under President-elect Donald Trump. Cohen believes that anticipated deregulation in the cryptocurrency sector will significantly benefit Bitcoin and could lead to another remarkable year for the digital asset.

During a recent interview on CNBC’s “ETF Edge,” Cohen highlighted the likelihood of advancements in legislative frameworks surrounding cryptocurrencies, particularly referencing the Financial Innovation and Technology for the 21st Century Act (FIT21). “There will be progress made on stable coins and on definitions in taxonomy,” she stated, signaling a shift that could lend greater clarity and support to the market.

Cohen oversees the iShares Bitcoin Trust (IBIT), which has seen a substantial increase of 114% since its launch in January 2024, and is up nearly 8% year-to-date. This upswing coincides with Bitcoin briefly crossing the $100,000 mark earlier this week, reflecting a positive trajectory for the cryptocurrency.

Despite these promising figures, Cohen cautions investors about the inherent risks associated with Bitcoin. “Bitcoin is a risky asset. So, 15% in the context of Bitcoin is not an enormous move. Investors should expect volatility,” she advised. She emphasized that the long-term value of Bitcoin will largely hinge on its adoption rate and how quickly it gains traction among users and investors.

In an exciting development for the cryptocurrency sector, BlackRock officially launched its iShares Bitcoin ETF on CBOE Canada this week. This move aligns with a broader trend, as various financial firms are increasing their investments in cryptocurrencies at the start of the year. Notably, Calamos Investments is set to introduce its Bitcoin Structured Alt Protection ETF shortly after Trump’s inauguration, branded as the “world’s first 100% downside protected bitcoin ETF.” This innovation may provide investors with new avenues for engaging with Bitcoin while alleviating some of the risks associated with its volatility.

As the market reacts to these changes and developments, many will be watching closely to see how regulatory progress and market dynamics influence Bitcoin’s role in the financial sphere.

Source
www.cnbc.com