NASDAQ IBIT: how high will iShares Bitcoin Trust ETF go?

NASDAQ IBIT, shares of the iShares Bitcoin Trust ETF rallied 38.8% during November, according to data from S&P Global Market Intelligence.

The exchange-traded fund (ETF) closely mirrors the price of Bitcoin (BTC -1.33%), enabling investors to access the cryptocurrency through major brokerage platforms without needing to buy it directly on a crypto exchange.

Following Donald Trump's election on November 5, Bitcoin experienced a significant surge, and consequently, this Bitcoin ETF saw a similar uptick.

Institutional Inflows and Outflows

Recent adjustments in positions for iShares Bitcoin Trust (IBIT) have been made by several institutional investors and hedge funds. Franklin Resources Inc. acquired a new stake in the fund during the third quarter, investing approximately $1,107,000. Tidal Investments LLC increased its holdings by 12.4% in the same quarter, now owning 228,354 shares valued at $8,250,000 after purchasing an additional 25,232 shares.

World Investment Advisors LLC also raised its position by 31.1%, bringing its total to 11,888 shares worth $430,000 after acquiring 2,823 more shares. Sanctuary Advisors LLC significantly boosted its stake by 723.2%, now owning 88,811 shares valued at $3,209,000 following an additional purchase of 78,022 shares. Lastly, Pine Valley Investments Ltd Liability Co entered a new position in IBIT during the third quarter, valued at $353,000.

During mid-day trading on Monday, the share price of iShares Bitcoin Trust (NASDAQ: IBIT - Get Free Report) rose by 2.5%. It reached a high of $58.21 before last trading at $57.80. A total of 50,016,990 shares were exchanged, marking a 46% increase from the average session volume of 34,374,723 shares. The stock had closed at $56.40 in the previous session.

iShares Bitcoin Trust Company Profile

The iShares Bitcoin Trust (IBIT) is an exchange-traded fund focused on investing primarily in long positions in Bitcoin while shorting USD currency. As a passively managed fund, its primary objective is to closely track the spot price of Bitcoin, providing investors with a straightforward way to gain exposure to the cryptocurrency market without directly holding digital assets.

Launched on January 5, 2024, IBIT is issued by BlackRock, a leading global asset management firm known for its extensive range of investment products. By utilizing the ETF structure, IBIT offers liquidity and ease of trading on major exchanges, making it accessible to a broad range of investors. This fund is designed for those looking to capitalize on Bitcoin's price movements while benefiting from the regulatory framework and investor protections associated with traditional securities. Overall, IBIT represents a modern approach to investing in cryptocurrencies.

Prediction: Bitcoin May Surpass Gold's Value

Currently, gold's market cap is approximately $18 trillion, while Bitcoin's sits at around $2 trillion, Bitcoin price surges to $100,000 for the first time. This implies that Bitcoin would need to increase its value nearly ninefold to match gold's total market cap. I believe this is a realistic long-term target for Bitcoin's price.

The technology behind Bitcoin and its capacity to function in a decentralized manner are well established, giving it comparable resilience to traditional currencies. In fact, Bitcoin may even outlast some national currencies since it doesn’t rely on any state for its existence. Gold shares this quality; while nations may rise and fall, gold endures.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.