Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Why the iShares Bitcoin Trust ETF Rocketed Almost 40% in November

Source The Motley Fool

Shares of the iShares Bitcoin Trust ETF (NASDAQ: IBIT) rallied 38.8% during November, according to data from S&P Global Market Intelligence.

The exchange-traded fund (ETF) closely tracks the price of Bitcoin (CRYPTO: BTC), allowing investors to gain exposure to the cryptocurrency on major brokerage platforms without having to purchase it directly on a crypto exchange.

Bitcoin has rallied big time in the wake of Donald Trump's election on Nov. 5, so this Bitcoin ETF followed suit.

Trump became a crypto enthusiast this year

Although incoming President Trump lambasted Bitcoin and its legitimacy back when he was in office in 2019, he appeared to change his mind on the cryptocurrency earlier this year.

Whether the change of heart was genuine or based on winning key demographic groups ahead of the 2024 presidential election is unclear. However, Trump's rhetoric clearly became more pro-crypto this summer, while the industry had maintained a negative opinion of the Biden administration's more heavy-handed regulatory approach, particularly related to SEC Chairman Gary Gensler.

This summer, Trump appeared at a crypto conference, where he promised to make the United States the "crypto capital of the planet," while also announcing his support for the U.S. government buying a strategic reserve of Bitcoin. One of the big arguments for Bitcoin is that it would be a store of value, should the value of other currencies plummet due to inflation or geopolitical disaster.

With the industry deeming Trump the more crypto-friendly candidate, it's no surprise the price of Bitcoin surged following his election, recently clearing the $100,000 price level.

Recent moves by the incoming administration

While the price of Bitcoin surged immediately following the election, the incoming Trump administration has also made some crypto-related announcements in recent days. In late November, Trump announced he would create a crypto advisory council, which will be made up of industry executives to suggest how to shape industry regulations.

Then on Thursday, Trump announced he was appointing venture capitalist and former PayPal COO David Sacks as, "White House AI & Crypto Czar," which would be a new position created by the administration. On social media, Trump wrote that Sacks, who was a large donor to Trump, "will work on a legal framework so the Crypto industry has the clarity it has been asking for, and can thrive in the U.S."

The future of Bitcoin and other cryptocurrencies remains highly speculative and only appropriate for those who understand the risks. At this point, Bitcoin is akin to digital gold, and gold's value can be highly speculative, fluctuating with the economy and geopolitical events.

Nonetheless, it does appear a more crypto-friendly regulatory regime will be coming to Washington over the next four years. Where the price of Bitcoin may go as a consequence of that is very hard to figure out following its November run. However, crypto traders and investors can likely count on a more permissive regulatory backdrop for the foreseeable future.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $369,349!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,990!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $504,097!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 2, 2024

Billy Duberstein and/or his clients has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short December 2024 $70 calls on PayPal. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500 A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Author Suzie

Sep 14, Mon

A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve begins The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Author Irene Q.

Sep 15, Tue

The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Silver breaks $64 as precious metals rebound — can gold hold the $4,280 line into the Fed decision?Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.

Author Suzie

Yesterday 08: 40

Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.

Dow drops 631 points as the Fed hikes — but futures are rebounding: what's next for US stocks?The Dow fell 631 points and the S&P 500 closed below 7,600 after the Fed hiked rates for the first time since 2023, with the dot plot showing 16 of 18 officials expect more tightening. Asia-session futures are already recovering — here are the levels and analyst views that decide whether 7,500 holds.

Author Irene Q.

10 hours ago

The Dow fell 631 points and the S&P 500 closed below 7,600 after the Fed hiked rates for the first time since 2023, with the dot plot showing 16 of 18 officials expect more tightening. Asia-session futures are already recovering — here are the levels and analyst views that decide whether 7,500 holds.

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

10 hours ago

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Popular Symbols