Cryptocurrencies: Bitcoin from niche to mass product?

Bitcoin, Ethereum & Co are back on everyone's lips - also because US presidential candidate Trump has outed himself as a fan. In addition to the Bitcoin ETF, an Ethereum ETF has now also been approved in the US. 
 

1 August 2024. FRANKFURT (Börse Frankfurt). The crypto-friendly positioning of US presidential candidate Donald Trump is also ensuring brisk trading for crypto ETNs - and a tailwind for prices. In the first week of July, Bitcoin had fallen to 55,000 US dollars. After the assassination attempt on Trump on July 13, however, it then climbed to over USD 68,000, heading for its all-time high of just over USD 73,000 in March. On Thursday morning, it was still at 64,180 US dollars.

Last weekend, Trump promised at a Bitcoin conference in Nashville, Tennessee, to make the US the "crypto capital of the planet and a Bitcoin superpower" upon his return to the White House. He said he wanted to create a "strategic Bitcoin reserve" and end the "war on crypto".

Bitcoin and Ethereum ETNs in demand

There is therefore a lot going on in crypto ETN trading at the moment: Leo Puschmann from Lang & Schwarz reports many purchases of Bitcoin and Ethereum ETNs, such as the ETC Group Physical Bitcoin (DE000A27Z304) and 21Shares Ethereum Staking (CH0454664027). "Crypto baskets such as the 21Shares Crypto Basket Index (CH0445689208) are also in high demand," explains the trader. A recurring theme: purchases in 1Valour Bitcoin Physical Carbon Neutral (GB00BQ991Q22), as Ivo Orlemann from ICF Bank reports. The ETN promises a climate-friendly investment in Bitcoin by offsetting the energy generated with CO2 certificates.

Bitcoin from niche to mass product?

"A re-election of Trump and the implementation of the Bitcoin Reserve plans would of course be very positive for Bitcoin this year and beyond," explains André Dragosch from issuer ETC Group. He sees the largest cryptocurrency in both the US and Europe on the cusp of mass adoption in the retail sector. "We are most likely at a turning point from 'early adopters' to 'early majority'."

"The crypto community is excited about the prospects of a crypto-friendly presidency, but politicians are currently ensnaring swing voters," emphasizes Bernhard Wenger from 21Shares. Many promises would not be implemented. Nevertheless, Trump's statements are evidence of the changed sentiment towards cryptocurrencies. "Investors should remember why cryptocurrencies are where they are now: Bitcoin's value stems from its scarcity and predetermined supply, which positions it as a strategic reserve." 

Adrian Fritz from 21Shares points to some current negative factors, such as the sale of newly mined bitcoins by bitcoin miners and bitcoin sales by the German government. "However, against the backdrop of a continued restrictive interest rate policy and a possible re-emerging banking crisis in the US, investors should continue to have a lot of confidence in this asset," says Fritz. The strong inflow of capital into Bitcoin spot ETFs in the US proves this.