Key Takeaways
- • Bitcoin surged to over US$100,000 for the first time following Trump's election victory and his nomination of crypto advocate Paul Atkins as SEC chair, signaling regulatory tailwinds for the digital asset class.
- • BlackRock's iShares Bitcoin Trust ETF (IBIT-Q) has accumulated approximately US$48 billion in assets since its January 2024 launch, already surpassing the US$33 billion held in its flagship iShares Gold Trust ETF, demonstrating institutional capital inflows into spot bitcoin ETFs approved in 2024.
- • Canadian fund managers including Peter Hofstra at CI Global Asset Management are positioning for bitcoin appreciation under a crypto-friendly U.S. administration, though they acknowledge elevated volatility and plan risk management strategies, such as capping individual positions at 4 percent.
- • U.S.-listed spot bitcoin ETFs have attracted tens of billions in capital since approval in 2024, compared to Canadian-listed bitcoin ETFs that launched in 2021, reflecting accelerated institutional adoption driven by regulatory clarity.
- • Bitcoin maintains appeal for investors in hyperinflationary jurisdictions seeking to move capital digitally without intermediaries, broadening its utility beyond speculation and supporting sustained demand outlook.
Summary
Bitcoin has reached an unprecedented milestone above US$100,000 following Donald Trump's election victory and his pledge to position the United States as the "crypto capital of the planet." The catalyst for the latest surge came when the president-elect announced his intention to nominate Paul Atkins, a cryptocurrency advocate, as the next Securities and Exchange Commission chair. This regulatory signal has prompted Canadian institutional asset managers to reassess their cryptocurrency exposure and positioning.
BlackRock's iShares Bitcoin Trust ETF exemplifies the institutional capital migration into crypto assets. Since launching in January 2024, the fund has grown to approximately US$48 billion in assets under management—a figure that now exceeds the US$33 billion held in BlackRock's flagship iShares Gold Trust ETF. This inversion represents a structural shift in how institutional investors are allocating to alternative assets, with spot bitcoin ETFs approved in the U.S. in 2024 attracting tens of billions of dollars in their opening months.
Peter Hofstra, senior vice president and co-head of equities at Toronto-based CI Global Asset Management, encapsulates the cautious optimism permeating Canadian fund management. While identifying bitcoin as his preferred cryptocurrency, Hofstra acknowledges the asset class's historical volatility but notes that "a U.S. administration that seems supportive of crypto" likely sustains or accelerates near-term demand. His firm oversees the CI Global Alpha Innovators Corporate Class fund with exposure to crypto-related securities, yet Hofstra implements downside discipline by planning to trim positions back to 4 percent each if valuations escalate significantly.
Beyond speculative demand, bitcoin retains functionality in countries experiencing hyperinflation, where investors utilize the digital asset to move capital without intermediaries—a use case that provides a demand floor independent of U.S. regulatory sentiment. Canadian fund managers recognize both the tailwind from Trump administration policies and the structural risks inherent to cryptocurrency markets, positioning their portfolios to capture upside while managing concentration risk.
BlackRock's iShares Bitcoin Trust ETF exemplifies the institutional capital migration into crypto assets. Since launching in January 2024, the fund has grown to approximately US$48 billion in assets under management—a figure that now exceeds the US$33 billion held in BlackRock's flagship iShares Gold Trust ETF. This inversion represents a structural shift in how institutional investors are allocating to alternative assets, with spot bitcoin ETFs approved in the U.S. in 2024 attracting tens of billions of dollars in their opening months.
Peter Hofstra, senior vice president and co-head of equities at Toronto-based CI Global Asset Management, encapsulates the cautious optimism permeating Canadian fund management. While identifying bitcoin as his preferred cryptocurrency, Hofstra acknowledges the asset class's historical volatility but notes that "a U.S. administration that seems supportive of crypto" likely sustains or accelerates near-term demand. His firm oversees the CI Global Alpha Innovators Corporate Class fund with exposure to crypto-related securities, yet Hofstra implements downside discipline by planning to trim positions back to 4 percent each if valuations escalate significantly.
Beyond speculative demand, bitcoin retains functionality in countries experiencing hyperinflation, where investors utilize the digital asset to move capital without intermediaries—a use case that provides a demand floor independent of U.S. regulatory sentiment. Canadian fund managers recognize both the tailwind from Trump administration policies and the structural risks inherent to cryptocurrency markets, positioning their portfolios to capture upside while managing concentration risk.
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