Bitcoin’s Big Break—$60B ETF Surge & Trump’s Crypto Game Plan

Bitcoin is about to blow up again, driven by institutional investments, regulatory changes and ETF inflows.

Bernstein thinks it’s at the epicenter of a financial transformation and all the stars are aligning to take it higher.

Bitcoin’s bull run kicked off in late 2023 when ETF approvals expectations nearly doubled the price. Since then ytd inflows into Bitcoin ETFs have hit almost $5B and Bernstein is projecting $60B by 2025. The SEC’s SAB 121 repeal has also opened up banks to offer crypto custody services so Bitcoin is now an institutional asset.

Bitcoin’s market cap is $2T, a fraction of gold’s $18T. As institutions and sovereigns accumulate Bitcoin analysts see a big convergence of demand that could take it to new all time highs.

Trump’s Crypto Policies Could Reshape the Industry

Former President Donald Trump’s return to politics has become a pivotal factor in the crypto market’s trajectory. His pro-crypto stance has energized industry participants, positioning the U.S. as a potential global leader in digital assets.

The Trump administration’s formation of a dedicated crypto task force, led by White House crypto czar David Sacks, is being closely monitored by analysts. One of the key proposals under consideration is the creation of a U.S. national Bitcoin reserve. With the government already holding $20 billion in seized Bitcoin, speculation is mounting over whether these assets will be retained rather than sold, potentially triggering a global race among central banks to accumulate Bitcoin.

Sovereign Wealth Funds Eye Bitcoin Inflows

Another big development is the proposed U.S. sovereign wealth fund with exposure to digital assets. Top policy advisors are backing this initiative which will invest in American crypto companies and allocate to Bitcoin itself.

• Abu Dhabi’s Mubadala Investment Company is already investing in Bitcoin ETFs.

• Big hedge funds and asset managers have increased their crypto exposure in recent months.

• State backed investment entities are looking at direct Bitcoin allocations.

David Sacks has said the proposed sovereign wealth fund could influence Bitcoin adoption at the state level. If implemented this will cement Bitcoin’s status as a macro hedge and legitimize it as a store of value alongside traditional safe haven assets.Institutions are buying and regulations are clearing, it’s time again.