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.