The global digital assets market, led by Bitcoin (BTC), is once again in the spotlight as President-elect Donald Trump prepares to assume office. With a wave of optimism around pro-crypto policies, BlackRock’s ETF Chief, Samara Cohen, has forecasted another historic year for Bitcoin and the broader cryptocurrency industry.
Trump Administration Expected to Usher in Crypto Deregulation
Samara Cohen, Chief Investment Officer of ETF and Index Investments at BlackRock, spoke on CNBC’s “ETF Edge,” expressing confidence in the Trump administration’s commitment to advancing cryptocurrency innovation. She highlighted the potential progress of the FIT21 Act (Financial Innovation and Technology for the 21st Century Act) as a game-changer for the sector.
“The upcoming deregulation and clearer taxonomy for stablecoins could push Bitcoin’s price to new heights,” Cohen predicted.
Bitcoin’s Record Performance and BlackRock’s ETF Growth
Bitcoin has already made significant strides, gaining over 50% in the past 90 days and crossing the $100,000 threshold. It reached a new all-time high (ATH) of $108,000 on December 17, 2024. At press time, Bitcoin is trading at an average price of $102,026.
BlackRock’s iShares Bitcoin Trust (IBIT), which debuted in January 2024, has been a major catalyst for institutional interest in Bitcoin. The ETF has surged 114% since its launch and now boasts nearly $38.04 billion in cumulative inflows. IBIT became the fastest exchange-traded product (ETP) to reach $10 billion in assets under management (AUM), achieving the milestone within two months of its launch.
Additionally, BlackRock introduced Ether ETPs, such as the Shares Ethereum Trust ETF (ETHA), in July 2024, further expanding its cryptocurrency offerings.
Volatility Ahead Despite Bullish Momentum
While bullish sentiment dominates the market, Cohen cautioned investors to be mindful of Bitcoin’s inherent volatility.
“Bitcoin is a risky asset. 15% moves aren’t enormous in this space. Long-term prices hinge on adoption rates,” she explained.
Crypto ETPs: Bridging Traditional Finance and Digital Assets
In a recent LinkedIn post, Cohen emphasized the role of Bitcoin ETPs, including IBIT, in bridging the gap between cryptocurrency and traditional finance.“ETPs have enhanced liquidity and price discovery, allowing investors of all types to gain exposure to Bitcoin efficiently,” Cohen stated.
Data from SoSoValue shows that Bitcoin ETFs recorded an inflow of $626.15 million on January 16th alone. BlackRock’s IBIT led the market with a deposit of $527.87 million, while Grayscale’s GBTC reported a net outflow of $69.97 million, contributing to a cumulative outflow of $21.68 billion.
Crypto Advocates Head to Washington
The cryptocurrency industry is also making inroads in Washington. President-elect Trump is expected to appoint several crypto-friendly figures to key advisory roles, signaling a commitment to fostering innovation.
Among the appointments is billionaire Scott Bessent, nominated for Treasury Secretary. Bessent, a vocal supporter of digital assets, has called cryptocurrency “freedom” and pledged to divest his holdings in BlackRock’s Bitcoin ETF shares within 90 days of confirmation.
January 2025, Cryptoniteuae
