Cryptocurrency Outlook: A New Era of Growth?
The cryptocurrency market is poised for a significant surge, according to BlackRock’s ETF chief, Samara Cohen. With the incoming administration, Cohen believes that deregulation will pave the way for bitcoin to reach new heights.
A Historic Year Ahead?
Cohen, who oversees the firm’s iShares Bitcoin Trust (IBIT), is optimistic about the future of cryptocurrency. She cites progress on the Financial Innovation and Technology for the 21st Century Act (FIT21), stable coins, and clearer definitions in taxonomy as key drivers of growth. The iShares Bitcoin Trust has already seen a remarkable 114% increase since its January 2024 debut and an 8% gain year to date.
Volatility Ahead: Buckle Up!
While bitcoin briefly traded above $100,000 this week, Cohen warns investors to expect turbulence. “Bitcoin is a risky asset,” she cautions. “Investors should expect volatility.” However, she believes that the long-term price of bitcoin will ultimately be determined by the level and pace of adoption.
New Developments in the Cryptocurrency Space
BlackRock has officially launched its iShares Bitcoin ETF on CBOE Canada, marking a significant milestone in the firm’s cryptocurrency journey. Meanwhile, Calamos Investments is set to launch its Bitcoin Structured Alt Protection ETF next Wednesday, boasting 100% downside protection.
What’s Next for Cryptocurrency?
As the cryptocurrency landscape continues to evolve, one thing is clear: the industry is ripe for growth. With regulatory progress and increased adoption on the horizon, investors are eagerly anticipating the next chapter in the cryptocurrency story. Will bitcoin continue its upward trajectory, or will volatility throw a wrench in the works? Only time will tell.
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