The Volatility Shares 2x Bitcoin Strategy ETF (BITX) saw a notable 20% surge on Monday, driven by Bitcoin’s new all-time high of $84,961, according to CoinMarketCap data. This rally comes amid investor optimism following Donald Trump’s resounding presidential victory and MicroStrategy’s announcement of a massive Bitcoin acquisition, reigniting enthusiasm in the cryptocurrency market.
BITX, a leveraged exchange-traded fund designed to deliver twice the daily return of Bitcoin, has capitalized on the recent surge, becoming one of the largest Bitcoin-focused funds with $2.4 billion in assets under management. The fund’s growth reflects the increasing demand for tools that offer amplified exposure to Bitcoin’s volatile price swings.
Trump’s Victory Boosts Crypto Sentiment
Kent Thune, research lead, noted that Trump’s victory has significantly bolstered investor sentiment in the cryptocurrency sector. “The fear of missing out appears much stronger than the fear of downside risk. Thus, at the moment, the path of least resistance is clearly up,” Thune said, highlighting the positive outlook among technical analysts and traders alike.
MicroStrategy’s $2 Billion Bitcoin Buy Sparks Further Rally
The Bitcoin rally was further fueled by MicroStrategy, the largest corporate holder of Bitcoin, which announced it had purchased an additional 27,200 Bitcoins for approximately $2 billion in cash, at an average price of $74,463 per Bitcoin. Following the announcement, MicroStrategy’s stock surged by 19.4%, while leveraged ETFs tied to the company’s performance, including the Defiance Daily Target 2X Long MSTR ETF (MSTX) and T-Rex 2X Long MSTR Daily Target ETF (MSTU), soared 39.3% and 37.9%, respectively.
MicroStrategy now holds a total of 279,420 Bitcoins, valued at roughly $16 billion, solidifying its position as the largest corporate Bitcoin holder in the world.
Bitcoin ETFs See Strong Gains
The momentum in Bitcoin prices also boosted other Bitcoin ETFs, with the iShares Bitcoin Trust (IBIT) rising 10.3% and reaching $34.5 billion in assets under management. This marked a significant milestone, as the fund surpassed the $32.9 billion iShares Gold Trust (IAU), which has been around for nearly two decades.
The T-Rex 2X Long Bitcoin Daily Target ETF (BTCL), a smaller competitor to BITX with $22.6 million in assets, mirrored BITX’s performance, posting a 20.3% gain as leveraged products continue to benefit from Bitcoin’s explosive momentum.
As Bitcoin prices and related ETFs continue to surge, the rally has prompted renewed interest from both retail and institutional investors, with the cryptocurrency market’s growth showing no signs of slowing down in the wake of Trump’s victory and MicroStrategy’s massive Bitcoin acquisition.
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