Donald Trump's Return To White House Could Propel These ETFs To New Highs - Grayscale Bitcoin Trust (BTC)

As the election season heats up, certain ETFs could experience significant impacts if Donald Trump secures the presidency. These funds span various sectors, including cryptocurrencies, energy, and small-cap stocks.

One of the sectors that investors need to keep an eye out for is cryptocurrency. Favorable policies and regulatory frameworks could emerge, boosting the crypto industry. A recent analysis suggests Bitcoin (CRYPTO: BTC) could reach $90,000 if Trump wins, highlighting the importance of crypto policy in this election. Bitcoin-based ETFs like iShares Bitcoin Trust ETF (NASDAQ:IBIT), Grayscale Bitcoin Trust (NYSE:GBTC) and CoinShares Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) might see benefits if Trump continues his supportive stance on cryptocurrencies and blockchain technology.

The energy sector, often backed by Republicans, could also thrive under a Trump administration. Deregulation and supportive policies for fossil fuels such as oil, natural gas, and coal could enhance the attractiveness of energy stocks. Trump's 2016 victory was also favorable for the oil and coal industries since he supported deregulating the energy sector and prioritizing American energy production. The Energy Select Sector SPDR Fund (NYSE:XLE) is among the largest ETFs in this sector and might see an uptick if the former president returns.

Small-cap companies, particularly those focused on domestic markets, could benefit from reduced regulation and favorable corporate taxes. The iShares Core S&P Small-Cap ETF (NYSE:IJR) may see positive performance under such conditions.

However, Trump’s proposed corporate tax cuts have sparked significant discussion. He is advocating for a reduction of the federal corporate tax rate from 21% to 15%. Supporters argue that past economic gains have followed similar tax reductions while others say that lowering the corporate tax rate to 15% could increase the U.S. GDP by 0.4% and potentially create approximately 93,000 full-time jobs.

Price Action: As per Benzinga Pro, during pre-market session on Monday, IBIT was trading 0.48% lower, WGMI was down by 0.52% and GBTC was down by 0.44%. Comparatively, XLE was faring slightly better, trading 0.80% higher. Meanwhile, IJR was up 0.05%.

Read Next: