U.S. Market Hits All-Time Highs After Trump Victory

U.S. market indices closed at all-time highs following Donald Trump’s victory over Vice President Kamala Harris. Shares of Coinbase (ticker: COIN) surged over 30%, closing near year-to-date highs, and the GraniteShares 2x Long COIN Daily ETF (CONL) closed up 62%, possibly setting a record for one-day returns on an ETF, according to analyst Eric Balchunas.

> "It also traded about $1b and now has close to $1b in assets," Balchunas stated. “Another hot sauce hit from GraniteShares, who recently struck gold with $NVDL (now $6b). What a country.”

A leveraged ETF uses financial derivatives and debt to amplify daily returns of a security, often targeting a 2:1 ratio or higher. These funds are considered high risk and are typically aimed at experienced traders, earning nicknames like "ghost pepper" or "hot sauce" funds. Matt Tuttle, CEO of Tuttle Capital, acknowledged the demand for such investments, stating there are many traders eager for this volatility.

Wednesday's movements were notable for both stock indices and cryptocurrencies, with bitcoin surpassing $75,000, setting a new all-time high. The top 16 ETFs experienced trading flows totaling $22 billion, indicative of strong investor interest. Balchunas remarked on the influx of cash into these riskier ETFs, noting year-to-date net flows reaching $856 billion, just shy of a record.

The 12 spot bitcoin ETFs, launched earlier in the year, traded over $6 billion on Wednesday, their highest daily total since March 14. In light of recent events, Coinbase announced a $1 billion share repurchase program, concluding the third quarter with $8.2 billion in USD resources. CEO Brian Armstrong commented on Trump's victory, noting that an anti-crypto stance could hinder political careers, as it doesn't reflect the voters' desires for change in the financial system.