Trump Effect: Crypto's Bull Market Catalyst?

After Trump's attack, the odds of winning have risen sharply to 70%, and markets expect Trump to be elected president again. At the same time, given Trump's recent statements supporting cryptocurrency development, crypto sentiment has bounced markedly, Bitcoin and Ethereum have risen markedly, and Bitcoin concept shares have risen rapidly.

So, what impact will Trump's campaign success have on cryptocurrencies? How can investors build their own trading strategy?

What impact will the success of the Trump campaign have on cryptocurrencies?

First of all, in terms of attitude, Trump is very positive about cryptocurrencies at the moment, and if elected, there will be hope to spur the development of the cryptocurrency industry.

Trump's attitude toward cryptocurrencies has undergone a complex evolution. During the initial administration, the Trump administration was skeptical and negative about cryptocurrencies, seeing them as lacking intrinsic value and being easily used for illegal activities.

And in the 2024 general election, Trump's attitude underwent a major 180-degree shift, not only publicly supporting the development of cryptocurrencies, delivering a speech “Ensuring the future of crypto and Bitcoin happens in the United States”, but also accepting cryptocurrency donations in his campaign in hopes of getting elected Support from the people.

At the same time, we can also see the evolution of the future cryptocurrency industry from Trump's campaign statement and the direction of the administration.

The Trump administration will continue to support innovations in fintech, including blockchain technology and cryptocurrencies. This may reflect increased R&D funding, enhanced patent protection and cooperation with the private sector.

In the latest released Republican manifesto, it explicitly mentions support for cryptocurrencies: “Republicans will end the Democrats' illegal and anti-U.S. interest crypto crackdown and oppose the creation of a central bank digital currency. We will defend the right to mine Bitcoin and ensure every American has the right to own their digital assets and transact without government oversight and control.”

Therefore, from Trump's attitude and the Republican manifesto, Trump on the platform will benefit the development of the cryptocurrency industry. And the Trump administration's penchant for “tax cuts,” “low interest rates,” “weak dollar,” “domestic economic protection” are all likely to benefit the cryptocurrency industry, which has “anti-inflation” and “hedging” attributes.

How to invest in cryptocurrencies?

The cryptocurrency industry has been making gains recently, and in addition to this key factor boosting the odds of a Trump win, there have been recent media reports that an Ethereum spot ETF product is expected to launch next Tuesday, which is expected to boost liquidity and investment sentiment for cryptocurrencies.

So how should we invest in cryptocurrencies?

The platform offers multiple digital currency spot ETFs for users to trade, which are distributed across multiple markets. IN THE MOBILE APP, INVESTORS CAN ACCESS AND TRADE DIGITAL CURRENCY SPOT ETF TOPICS FOR HONG KONG AND US STOCKS VIA THE MARKETS - ETF SECTION. Here is a brief overview of some of the ETF products (in order of trading volume within the block):

US Stock Market:

1. $ iShares Bitcoin Trust (IBIT.US) $

Issued by BlackRock, one of the world's largest asset management companies, is the highest traded ETF of the type. As a product under the banner of a reputable asset management company, iShares Bitcoin Trust is able to appeal to investors who trust the BlackRock brand. The Fund's net worth reached $19.85 billion.

FEATURES: THE ETF IS HIGHLY COMPLIANT AND INVESTORS CAN BUY AND SELL IBIT SHARES AT ANY TIME DURING NORMAL TRADING PERIODS, WITH RELATIVELY HIGH LIQUIDITY.

Risk: As the assets held are limited to digital currencies, the ETF may be subject to higher volatility and uncertainty; due to limitations such as cost and timeliness, the ETF does not always accurately reflect Bitcoin's price movements.

2. $ Fidelity Wise Origin Bitcoin Fund (FBTC.US) $

Issued by Fidelity Investments. It is very popular among investors and attracts a lot of funds.

Features: This ETF offers a low expense ratio and professional ETF management. Also, similar to IBIT, the ETF is able to trade at any time during normal trading hours. At the same time, Fidelity began its exploration into the field of digital currencies in 2014, with a deep research base.

Risk: Similar to IBIT, with volatility and possible errors.

3. $ Grayscale Bitcoin Trust (GBTC.US) $

The ETF is issued by Grayscale Investments and currently has the highest total market capitalization in the category. Grayscale Investments is a company focused on digital asset investing, and GBTC was one of the first products to allow investors to invest indirectly in Bitcoin through traditional financial accounts.

Features: GBTC's net asset value is based on the value of the Bitcoin it holds, but it does not track the price of Bitcoin in real time, nor does it have real-time trading on exchanges, but it is able to trade on the OTC market.

Risk: Compared to other spot ETFs, GBTC's redemption mechanism is limited, leading to liquidity issues and potential price deviations. In addition, its expense ratio is also slightly higher, reducing investor returns.

Hong Kong Stock Market:

1. $ Kerry Bitcoin (03439.HK) $

Managed by Jiaxi International Asset Management Co., Ltd. This ETF invests directly in Bitcoin and aims to track Bitcoin's price performance, subtracting fees and other expenses. Currently, the ETF has the maximum trading volume and trading amount in the block.

Features: The ETF's funds are 100% invested in Bitcoin. This provides investors with an opportunity to directly access the Bitcoin market without having to hold or store the cryptocurrency themselves. Suitable for those investors who have high demands on security and convenience and are focused on Bitcoin.

Risk: There may be tracking errors, i.e. the performance of the ETF may not fully replicate the actual price movements of Bitcoin.

Source: Futubull

2. $ China Bitcoin (03042.HK) $

Managed by Huaxia Fund (Hong Kong). Similar to the Huawei Bitcoin ETF, the Chinatown Bitcoin ETF is also designed to track Bitcoin's price performance.

Features: It also offers a channel to invest in Bitcoin through traditional financial markets, with a certain brand awareness and trust. At the same time, the ETF holds the highest market capitalization of its class.

Risk: As with all single Bitcoin ETFs, there are potential tracking error issues.

Source: Futubull

3. $ Chinese Ethereum (03046.HK) $

It is also managed by the China Asia Fund (Hong Kong), but the ETF tracks the price performance of Ether.

Features: This ETF focuses on Ethereum, unlike the previous two focusing on Bitcoin, it provides a channel for investing in the Ethereum ecosystem and its native tokens. This provides investors with the opportunity to diversify their cryptocurrency portfolio, especially for those who look forward to the multi-purpose blockchain platform Ethereum.

Risk: Similar to Bitcoin, the price of Ethereum fluctuates just as highly.

Source: Futubull

IN ADDITION TO ETFS, WE CAN ALSO FOLLOW CRYPTOCURRENCY-RELATED CONCEPT STOCKS, LOOKING FOR INVESTMENT OPPORTUNITIES IN PREMIUM STOCKS. SEARCHING FOR “DIGITAL CURRENCY CONCEPT STOCKS (LIST20010, LIST20074)” WILL SEE A COLLECTION OF RELATED CRYPTOCURRENCY CONCEPT STOCKS IN THE CONSTITUENT STOCKS.

Taken together, a cryptocurrency spot ETF has the advantages of high liquidity and ease of trading, relying on fiduciary regulation and professional management to ensure security and avoid the risk of private key management. But there are also flaws: price tracking can be inaccurate, influenced by the high volatility of digital assets, price volatility, and involves management costs that affect earnings. And investments in crypto concept stocks require a selection of premium stocks in order to earn extraordinary returns.

Therefore, everyone can complete trades based on the variety that matches their investment preferences.

One-stop trading with Futubull

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