Bitcoin Trust: Why iShares’ Stock Rocketed 13% in Less than a Week and Future Predictions

Key Points

• iShares’ Bitcoin Trust stock has seen a 13% increase in five days, influenced by potential political partnerships and ETF inflows.
• Despite a previous decline, recent developments have shifted the narrative in favor of iShares BTC Trust.

Recent Rise in iShares’ Bitcoin Trust Stock

iShares’ Bitcoin Trust stock has experienced a significant increase in value recently. Following the approval of Bitcoin spot ETFs earlier this year, the trust’s stock soared. In addition, Blackrock, the firm behind iShares, has seen substantial growth, reaching a record $10.6T in assets under management.

Despite a 1.69% decline in the past six months, the trust’s stock has seen a 13.08% surge in the past five days and a 13.68% increase over the last 30 days. These recent increases have led to speculation about the factors driving this rise.

Factors Influencing the Surge

One potential influence is the possible partnership between BlackRock CEO Larry Fink and former U.S. President Donald Trump. As the U.S. prepares for the 2024 presidential election, crypto is becoming a significant topic of discussion. Reports suggest that Trump, who has become a pro-crypto candidate, is considering Fink for the position of Treasury Secretary.

Another contributing factor is the increased inflow into the iShares BTC Trust. The approval of BTC ETFs has led to a surge in investment from institutional investors. For example, the BTC ETF inflow reached $310M in a single day last week, with iShares leading the way.

The affordability of iShares BTC Trust, with an expense ratio of 0.25%, has attracted investors, leading to an increase in its assets under management to $17.24B.

Finally, the changing market sentiment towards Bitcoin among institutional investors has also played a role. BlackRock has been a vocal supporter of Bitcoin, encouraging the recent inflow into the iShares BTC Trust. In a recent interview, BlackRock CEO Larry Fink acknowledged that Bitcoin could be a legitimate financial instrument, further boosting investor confidence in the iShares BTC Trust.