BlackRock ETF Chief Predicts Crypto Deregulation Will Propel Bitcoin to Record Highs

Uni24.co.za

   
Crypto NewsStudent ReadsEditor's Pick
Online CoursesBursaries for January 2025Uni Application Guides

BlackRock ETF Chief Predicts Crypto Deregulation Will Propel Bitcoin to Record Highs

Samara Cohen, BlackRock’s ETF Chief, has forecasted a historic year for Bitcoin (BTC), attributing the rally to anticipated crypto deregulation under President-elect Donald Trump’s administration. As regulatory barriers ease, Bitcoin and other digital assets are set to gain unprecedented momentum, according to Cohen’s insights shared on CNBC’s “ETF Edge.”


A Historic Year Awaits Bitcoin

Cohen anticipates that deregulation efforts, bolstered by the FIT21 Act (Financial Innovation and Technology for the 21st Century Act), will drive Bitcoin prices to new heights. Key highlights from her analysis include:

  • Bitcoin’s Surge in 2024: BTC reached an all-time high (ATH) of $108,000 on December 17, 2024, and is currently trading at an average price of $102,026.
  • BlackRock’s Success: The iShares Bitcoin Trust (IBIT) has seen remarkable growth:
    • 114% increase since its January 2024 launch.
    • Fastest exchange-traded product (ETP) to hit $10 billion AUM in just two months.
    • Recorded the highest daily inflow of $527.87 million on January 16, 2025, with cumulative inflows reaching $38.04 billion.

Despite these bullish trends, Cohen urged investors to remain cautious due to Bitcoin’s inherent volatility, noting that “15% moves aren’t enormous in this space.”


Bridging the Gap: The Role of Crypto ETPs

Cohen emphasized the transformative role of Bitcoin ETPs (Exchange-Traded Products) in connecting the crypto market with traditional finance.

  • Liquidity and Price Discovery: Products like BlackRock’s IBIT have enhanced market transparency, offering liquid vehicles for investors to adjust their exposure efficiently.
  • Adoption Across Investor Profiles: ETPs have attracted a diverse audience, including digital asset-native investors opening brokerage accounts and utilizing these instruments.

Market Data Highlights:

  • Bitcoin ETFs saw inflows of $626.15 million on January 16, 2025.
  • Grayscale’s GBTC reported net outflows of $69.97 million, underscoring the competitive edge of newer ETPs like IBIT.

Crypto Heads to Washington

The incoming Trump administration’s pro-crypto stance is expected to shape U.S. policy in favor of digital assets:

  • Key Appointments: Billionaire Scott Bessent, a vocal crypto advocate, has been nominated as Treasury Secretary. Bessent views cryptocurrency as “freedom” and has committed to divesting his BlackRock Bitcoin ETF shares within 90 days of confirmation.
  • Crypto Advocacy: Trump’s team is reportedly assembling crypto-friendly advisors to foster innovation and adoption in the industry.

Looking Ahead

With deregulation on the horizon, Bitcoin is poised for significant growth, supported by institutional adoption and innovative financial products. BlackRock’s expanding ETP lineup, including its recent launch of the iShares Bitcoin ETF in Canada, underscores the investment giant’s commitment to leading the charge in crypto integration.

As Cohen aptly stated, the industry is bridging gaps between traditional finance and digital assets, setting the stage for a transformative year in cryptocurrency.


Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research before making investment decisions.

Join the Rhapsody Prayer Network
Join the Rhapsody Influencer Network
Prayer of Salvation
Read Today's Rhapsody

 

Read rhapsody of realities daily devotional

Rhapsody of Realities is a life guide that brings you a fresh perspective from God’s Word every day. It features the day’s topic, a theme scripture, the day’s message, the daily confession and the Bible reading plan segment. It is God's Love Letter to You!