ETFs in focus as Bitcoin surpasses $105,000 ahead of Trump’s inauguration

Bitcoin rose above $105,000 on Friday, marking an important milestone in the new year. This rally, fueled by reports that President-elect Donald Trump may prioritize cryptocurrencies as a “national priority,” has reignited interest in cryptocurrency exchange-traded funds (ETFs), the investor website reported.

Reports about Trump’s potential crypto-friendly policies have lifted several cryptocurrency ETFs that have been recovering since Wednesday’s cold inflation data. This rebound came on the heels of a sharp sell-off stemming from concerns that the Federal Reserve may delay interest rate cuts following the strong jobs report.

Total outflows from Bitcoin ETFs reached $582 million last week, according to CoinDesk, as cited by the investor website. However, optimism surrounding Trump’s pro-crypto stance has continued to gain momentum. Notably, his proposed nomination of pro-crypto lawyer Paul Atkins to head the SEC could further support the sector.

Bitcoin miner Hut8 HUT has announced plans to build a $12 billion AI data center in Louisiana, likely in partnership with… Meta platforms dead. This collaboration could strengthen the relationship between blockchain technology and artificial intelligence, increasing interest in cryptocurrency-related investments.

Crypto ETFs provide a way to hold various digital currencies and stocks such as Coinbase currency, Marathon Digital Holdings Mara, Accurate strategy MSTR and Riot pads Riot control. Cryptocurrency ETFs provide high liquidity compared to some cryptocurrencies and exposure to Bitcoin or other coins without direct ownership risk. However, price volatility of the underlying currencies and regulatory hurdles remain a major concern.

BroShares Bitcoin ETF Beto

ETF BITO tracks Bitcoin futures and rose above its 50-day moving average during a four-day winning streak. The Relative Strength Rating rose to 86 from 42 in just three months, as quoted by Investors.com.

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The MVIS Global Digital Assets Equity Index is a rules-based, market cap-weighted, float-adjusted index that aims to give investors a way to track the overall performance of the global digital assets sector. ETF DAPP contains Coinbase, Block, MicroStrategy, and Core Scientific. The ETF charges a fee of 51 basis points and returns 3.47% annually.

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Diversified portfolio with top holdings in Coinbase, Core Scientific, MicroStrategy, and CleanSpark. It recently retraced its 50-day moving average. The BLOK ETF returns 5.39% annually and charges a fee of 76 basis points.

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