Bitcoin has surged around 139% since the start of the year (as of Dec. 18), driven by strong demand for U.S.-based ETFs, interest rate cuts by the Fed and Donald Trump’s victory in the U.S. Presidential elections.
After a volatile first half of 2024, Bitcoin embarked on a bullish rally, surging about 94% since early September. Its recent climb above the $100,000 mark has led strategists to predict that the cryptocurrency could surpass $200,000 by the end of 2025 driven by favorable factors.
Trump had pledged to position the United States at the forefront of the digital asset industry, transforming it into the “crypto capital of the world.” In his election campaign, Trump proposed creating a strategic Bitcoin reserve and introducing regulations supportive of digital assets.
The digital asset is expected to climb further after President-elect Donald Trump assumes office at the presidential inauguration on Jan. 20, 2025, fueling the enthusiasm of crypto bulls and accelerating investor optimism.
Crypto friendly policies and pro-crypto cabinet pave the way for a highly optimistic future for the digital asset. Trump's selection of crypto advocate Paul Atkins to chair the SEC, coupled with appointment of venture capitalist David Sacks as the incoming administration's "AI and Crypto Czar," serves as a strong positive signal for the industry, according to Yahoo Finance.
With many of his cabinet picks advocating for pro-bitcoin and pro-crypto policies, Trump's administration has the potential to spark one of the greatest crypto bull runs, as per Yahoo Finance. The market also anticipates that his leadership could bring about the most crypto-friendly regulatory environment in history.
The possibility of a strategic Bitcoin reserve for the United States further boosts optimism, driving estimates of the digital asset doubling by 2025. A strategic reserve is a stockpile of a critical resource, meant to be released during times of crisis or supply disruptions. The most well-known example is the U.S. Strategic Petroleum Reserve, which holds the world's largest emergency supply of crude oil.
According to Reuters, a Bitcoin reserve could help the United States maintain leadership in the global Bitcoin market, especially as competition from China grows. Along with serving as an inflation hedge, a reserve could also strengthen the greenback by bolstering the value of the U.S. dollar.
Additionally, the United States could reduce its deficit without raising taxes, strengthening the U.S. dollar, as Bitcoin continues to appreciate over time. According to pro-crypto Republican Senator Cynthia Lummis’s proposals, as quoted on Reuters, a strategic reserve could enable the U.S. to cut its debt in half within 20 years.
Growing interest from institutional investors is also driving the momentum, sending a positive signal to the market, reflecting the confidence of the world’s largest institutions in digital currency.
According to UK-based Standard Chartered analysts, as quoted on Yahoo Finance, Bitcoin flows have been dominated by institutional investors this year, with institutions purchasing 683,000 tokens year to date through spot ETFs. Approximately one-third of these inflows, or 245,000 Bitcoins, have occurred since the Presidential election.
Per Geoff Kendrick, global head of digital assets research at Standard Chartered, as quoted on Yahoo Finance, in 2025 institutional flows are expected to continue at or exceed the pace set this year, along with global pension funds increasing their spot ETF holdings.
Below, we have mentioned a few ETFs for investors to increase their portfolios’ exposure to digital currencies, taking advantage of supportive regulations and the long-term bullish outlook for digital assets.
For investors with a long-term horizon, increasing exposure to the digital asset now and following a momentum investing strategy can be a smart investment strategy, as cryptocurrency still has room for substantial momentum and further gains in the coming periods.
IShares Bitcoin Trustcharges an annual fee of 0.25% and has gathered an asset base of $57.69 billion.
IShares Bitcoin Trusthas gained 38.43% over the past month and 65.32% over the past three months.
Grayscale Bitcoin Trust charges an annual fee of 1.5% and has gathered an asset base of $22.26 billion. Investors can also look at
Grayscale Bitcoin Min
i
Trust
BTC which charges a comparatively cheaper annual fee of 0.15%.
Grayscale Bitcoin Trust has gained 39.10% over the past month and 65.25% over the past three months.
Fidelity Wise Origin Bitcoin Fund charges an annual fee of 0.25% and has gathered an asset base of $22.19 billion.
Fidelity Wise Origin Bitcoin Fund has gained 38.66% over the past month and 65.30% over the past three months.
ARK 21Shares Bitcoin ETF charges an annual fee of 0.21% and has gathered an asset base of $5.25 billion.
ARK 21Shares Bitcoin ETF has gained 38.43% over the past month and 65.33% over the past three months.
Bitwise Bitcoin ETF Trust charges an annual fee of 0.20% and has gathered an asset base of $4.46 billion.
Bitwise Bitcoin ETF Trust has gained 38.43% over the past month and 65.33% over the past three months.
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