In recent days, the cryptocurrency sector has witnessed notable developments as Bitcoin mining and investment firms respond to a surge in market activity and shifting political landscape. BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), recorded an all-time high in trading volume, reaching over $4.1 billion in a single day following Donald Trump’s presidential election victory. Meanwhile, Canadian Bitcoin miner Hut 8 announced plans to boost its self-mining capacity by 66% with the acquisition of over 31,000 new mining machines, positioning itself for growth amid an increasingly competitive post-halving environment.
BlackRock’s Bitcoin ETF Hits Record Trading Volume Following Donald Trump’s Election Win
BlackRock’s Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), witnessed a record-breaking trading day following Donald Trump’s victory in the 2024 US presidential election.
On Nov. 6, Bloomberg ETF analyst Eric Balchunas revealed on X that IBIT experienced its “biggest volume day ever,” amassing over $4.1 billion in daily trading volume. “For context, that’s more volume than stocks like Berkshire, Netflix, or Visa saw today,” Balchunas noted. In addition to high trading volumes, the ETF surged 10% on the same day, marking its second-best performance since its launch.
The impressive performance of BlackRock’s Bitcoin ETF wasn’t isolated; other Bitcoin ETFs also witnessed one of their most active trading days since January 2024. These ETFs achieved trading volumes twice their average, signaling a heightened level of interest among investors in light of Trump’s election.
IBIT’s record-setting day coincided with Bitcoin reaching a new all-time high of $76,500, less than a day after Trump’s win. This historic price surge suggests renewed optimism within the cryptocurrency market, particularly among those who view Trump as a favorable figure for the crypto industry.
Donald Trump’s pro-crypto stance has been a key factor in the recent upsurge of Bitcoin’s price and trading volumes. Analysts believe that his administration could usher in more crypto-friendly regulations, which may stimulate the growth of digital assets and bolster investor confidence in the sector. Trump’s promises of progressive cryptocurrency policies are likely to accelerate the approval of various crypto products, from Bitcoin ETFs to more diverse funds focused on altcoins like Solana, XRP, and Litecoin.
On Oct. 25, Balchunas had referred to crypto index ETF filings as “call options on a Trump victory.” Now that Trump has indeed won, the likelihood of these ETFs gaining regulatory approval has increased, potentially leading to a wider array of investment vehicles within the crypto space.
Bitcoin has dominated the ETF landscape this year, capturing the spotlight in six of the top ten most successful ETF launches of 2024, as noted by ETF Store President Nate Geraci.
The demand for Bitcoin ETFs has become increasingly evident as well, with asset managers submitting a variety of filings for funds holding altcoins, including Solana, XRP, and Litecoin. There is also a growing list of applications for crypto index ETFs, which aim to provide investors with a diversified portfolio of digital assets.
Bullish Predictions: Analysts See Bitcoin Reaching $100,000 in Trump’s Term
The optimism surrounding Bitcoin’s future price trajectory is palpable, with many analysts forecasting substantial gains. Fadi Aboualfa, Head of Research at Copper.co, said that a $100,000 price for Bitcoin is “quite possible” by Trump’s inauguration day on Jan. 20. This forecast aligns with other bullish predictions suggesting that Bitcoin could continue to climb, fueled by institutional interest and favorable government policies.
Trump’s pro-crypto stance and the anticipated regulatory clarity it brings are likely to attract even more institutional investors to the cryptocurrency market. This shift could have a transformative impact on Bitcoin’s price, pushing it toward the six-figure milestone that has long been a target among crypto enthusiasts.
Trump’s win has created an environment where financial institutions feel more confident in exploring crypto-backed investment products. As issuers await approval for crypto index ETFs, the coming months could witness an influx of diverse cryptocurrency funds designed to cater to a growing base of retail and institutional investors. By potentially fast-tracking these approvals, the Trump administration may significantly expand the US crypto market’s footprint on the global stage.
The record day for BlackRock’s Bitcoin ETF signals that Trump’s presidency could herald a new era of mainstream acceptance and innovation for digital assets in the US. As regulatory frameworks align with this expanding interest, the crypto sector is well-positioned to capitalize on a wave of investments from both seasoned investors and newcomers intrigued by the opportunities within the digital asset space.
Bitcoin Miner Hut 8 Set for 66% Hashrate Boost in Early 2025 with Major Hardware Acquisition
Canadian Bitcoin miner Hut 8 is set to increase its self-mining capacity significantly in early 2025 following a strategic acquisition of 31,145 Bitmain Antminer S21+ machines. This move is expected to drive the company’s self-mining hashrate up by a substantial 66%, from 5.6 exahashes per second (EH/s) to 9.3 EH/s. Announced on Nov. 6, the acquisition marks a critical step in Hut 8’s expansion strategy as it positions itself for heightened operational output and efficiency gains within the Bitcoin mining landscape.
Hut 8’s purchase of the Antminer S21+ units comes at a price of $15 per terahash, with the machines slated for delivery and installation in early Q1 2025. This investment is part of the company’s broader vision for scaling its mining capabilities, potentially allowing Hut 8 to maintain a competitive edge in a sector driven by high-performance mining equipment and energy efficiency.
With the deployment of these new machines, Hut 8’s operational capacity will undergo a transformative expansion, aligning with the company’s stated goal to create a path to over 24 EH/s of hashrate. This ambitious target could be realized as early as Q2 2025 if Hut 8 opts to exercise its purchase option from a prior agreement with Bitmain, allowing for an additional 15 EH/s boost.
In addition to increased hashrate, the deployment of Bitmain’s Antminer S21+ models will drive Hut 8’s fleet efficiency from 31.7 joules per terahash (J/TH) down to 19.9 J/TH — a 37% improvement in energy efficiency. If Hut 8 executes its option to purchase the U3S21EXPH ASIC miners from Bitmain, the firm’s fleet efficiency could further decrease to 15.7 J/TH. This enhancement would put Hut 8’s operations on par with leading miners in terms of energy efficiency, a critical factor in reducing operational costs and maximizing profitability.
The company’s CEO, Asher Genoot, highlighted the strategic decision behind choosing the S21+ machines, citing their favorable return profile compared to higher-efficiency models that often require larger upfront capital investments. “The S21+ offers a faster payback period than more efficient models across a wide range of hashprice scenarios,” Genoot explained. This choice, he added, enables Hut 8 to optimize investment returns and accelerate value creation, positioning it favorably within the highly competitive Bitcoin mining sector.
The announcement from Hut 8 comes at a pivotal time for Bitcoin miners globally, following Bitcoin’s April 2024 halving event. With block rewards reduced by half, mining profitability has become more dependent on scale and efficiency than ever before. Many large-scale miners have been upgrading their fleets to optimize output, ensuring they can continue to profitably operate under tighter margins and fluctuating hash prices.
By ramping up its hashrate and fleet efficiency, Hut 8 aims to capitalize on the post-halving environment. The timing of the new equipment deployment in Q1 2025 aligns with anticipated demand shifts in the Bitcoin market, which may see further institutional interest and increased investor confidence following recent highs in Bitcoin’s price.
As it increases its mining output, Hut 8 is also channeling its resources into AI and high-performance computing (HPC) as part of a diversification strategy. By leveraging the computing power derived from its mining operations, Hut 8 plans to maximize returns across its business verticals. This strategy reflects a growing trend among Bitcoin miners to repurpose or supplement their mining activities with adjacent technological initiatives, reducing reliance on Bitcoin price volatility and broadening revenue streams.
The company’s pivot into AI and HPC could also bolster its resilience, offering potential growth avenues that are not solely dependent on Bitcoin mining. This approach positions Hut 8 as a diversified tech company rather than a pure-play crypto miner, which may appeal to a broader spectrum of investors looking for exposure to cutting-edge technologies.
Market Impact: Bitcoin Surge and Hut 8 Share Price Rally
Hut 8’s announcement was released one day after Bitcoin hit a new all-time high, soaring past $76,500 following Donald Trump’s presidential victory in the US. The price surge sent ripples across the cryptocurrency sector, lifting the value of crypto-related stocks, including Hut 8. On Nov. 6, Hut 8’s stock price climbed 11% to reach $18.59, mirroring the market’s favorable reaction to Trump’s pro-crypto stance and anticipated regulatory benefits for the industry.
Hut 8’s expansion plans come at a time when investor sentiment toward the crypto sector is particularly bullish. With Trump in office, expectations are rising for a regulatory environment that could spur innovation and investment in digital assets. For Bitcoin miners like Hut 8, these favorable conditions create an opportunity to attract additional capital and expand their market presence.
