The iShares Bitcoin Trust (NASDAQ:IBIT) is seeing its time in the sun once again. The fund on July 10 set a new 52-week high, an astonishing 125.86% increase from its lows. Bitcoin itself broke above $118,900, reaching an all-time high today.
With tech stocks like NVIDIA Inc. (NASDAQ:NVDA) hot and whispers of rate cuts becoming louder, IBIT’s ride is not another crypto sugar rush; it could be something more profound: the mainstreaming of Bitcoin ETFs as solid portfolio staples.
So, is the rally genuine, or are investors again pursuing a mirage constructed of digital gold?
Tech Tailwinds And The Bitcoin-NVIDIA Connection
IBIT’s rally is synchronous with a technology surge that has been nothing less than historic. Nvidia’s $4 trillion valuation and the Nasdaq’s record run have made it a rising tide for risk assets, Bitcoin included. Bitcoin enthusiasts note that the cryptocurrency has a tendency to track tech stocks. With AI mania fueling demand for compute power and investor enthusiasm, Bitcoin has been along for the ride, flaunting its own bona fides as a macro asset.
In reality, others contend Bitcoin is now more than a hedge against fiat or inflation; instead, it’s evolving as a high-beta proxy for betting on the tech boom. Following months of trading in a tight $10,000 range, the breakout was overdue.
Rate Cuts And The Risk-On Revival
Monetary policy could be providing Bitcoin ETFs with an additional tailwind. A number of Fed officials, from Gov. Christopher Waller to regional Presidents Mary Daly and Michelle Bowman, have suggested that rate cuts are on the horizon as early as late July. Even President Donald Trump has echoed the dovish sentiment, advocating for swift cuts to mitigate inflationary damage from fresh tariffs.
That’s significant because Bitcoin doesn’t pay yield. In a world where interest rates are high, that’s a problem. But in a place where bonds and cash provide less punch, digital assets suddenly shine again. Bitcoin is nearly 26% higher this year, almost quadrupling the S&P 500’s 7% return.
Fed Chairman Jerome Powell‘s labeling of Bitcoin as “virtual and digital gold” may finally be clicking with investors who once derided crypto as little more than a hobby for tech bros.
Bitcoin Miners Turn AI
Yet another subplot: Bitcoin miners aren’t mining digital gold alone these days; they’re turning to AI. Bitfarms and similar companies are retrofitting their enormous, energy-hungry data centers to host AI workloads, which can command 5x–10x more valuation than crypto mining businesses.
For ETF investors, this creates a surprise crossover trade. As demand for AI infrastructure surges, these erstwhile crypto pure plays could transform into AI-adjacent stocks, the union of two of the market’s hottest themes. For the time being, the surge in Nvidia and Bitcoin’s rise appears more than coincidental.
IBIT and The Emergence Of Risk-Conscious Crypto Investing
As crazy as the rally has been, not all investors are eager to buckle up on the Bitcoin rocket without a parachute. Step into structured protection ETFs such as the Calamos Bitcoin Structured Alt Protection ETF (BATS:CBOJ), Calamos Bitcoin 90 Series Structured Alt Protection ETF (BATS:CBXJ), and Calamos Bitcoin 80 Series Structured Alt Protection ETF (BATS:CBTJ). These funds provide a buffer of protection that several nervous investors appreciate.
Demand for these types of tools is indicative that the crypto ETF space is maturing. Investors have vanilla trackers like IBIT, exposure-through-equity ETFs like Amplify Transformational Data Sharing ETF (NYSE:BLOK), and now buffered Bitcoin plays to select from.
Bottom Line
IBIT’s performance can’t be dismissed. Its high, positive weighted alpha of 89.3 (per Barchart) indicates momentum could persist in the near term. And with the stars finally aligning — tech mania, dovish Fed, regulatory tailwinds, and corporate adoption — Bitcoin ETFs are receiving more institutional shine than ever.
The question now isn’t so much if Bitcoin belongs in a portfolio, but rather what type of exposure is suitable for your risk profile.
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