Bitcoin at $89,000. Whew.
This is what a historic boom feels like. Or as Eric Balchunas put it, “Volmageddon.”
Thanks to Donald Trump’s victory last Tuesday, Bitcoin ETFs and crypto stocks such as MicroStrategy and Coinbase are chasing the top cryptocurrency with records of their own.
The two asset classes have recorded an unprecedented $38 billion in trading volume so far this week, according to Bloomberg data.
On Monday, Balchunas, the senior ETF analyst at Bloomberg, said investors are “looking for a little excitement,” during an interview on Bloomberg Television.
That may be putting it lightly.
Twice the size of gold
The rally is bound to drive more investors into Bitcoin ETFs.
With net assets of $90.6 billion, the analyst said Bitcoin ETFs could grow to two or three times the size of gold ETFs, which have $286 billion in net assets.
Balchunas described the mammoth trading activity around Bitcoin-related investment vehicles on Monday as a “Volmageddon.”
BlackRock’s IBIT Bitcoin ETF alone delivered about $4.7 billion in trading volume on Monday, data from SoSoValue shows.
The last week, of course, has rebooted all the performance scores for the last year.
Up 110%
Bitcoin has soared 110% since January, according to CoinGecko data. And Ether has risen 44%.
The market value for the total crypto universe has blown past $3 trillion and is also at an all-time high.
While Bitcoin may be hogging the spotlight, Ethereum is holding its own. Institutional investors ploughed a record $295 million into Ethereum ETFs on Monday.
Just last month, the market recorded zero inflows into Ethereum ETFs on one day.
Data from Farside shows US Ethereum ETFs have recorded over $500 million in daily flows since Trump’s victory on November 5.
The influx has been so great that Ethereum ETFs have reversed their negative performance since inception.
US crypto stocks are also riding the Bitcoin bonanza with Coinbase and MicroStrategy posting massive gains.
MicroStrategy’s stock price has rallied 396% this year to reach a new peak of $340 after 24 years.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. To share tips or information about stories, please contact him at osato@dlnews.com.
