After experiencing a volatile start to the year, Bitcoin seems to be back on track for a blockbuster year ahead. The digital currency fell roughly 9.5% for three days starting Jan. 5 but has since then rebounded, surging about 14% (as of Jan. 21).

In his election campaign, President Donald Trump proposed creating a strategic Bitcoin reserve and introducing regulations supportive of digital assets. On his second day in office, Trump announced the formation of a new SEC cryptocurrency task force, sparking new investor enthusiasm for digital assets.

Trump Administration Fuels Confidence in the Digital Asset Space

According to the SEC, as quoted on Yahoo Finance, the goal of the new crypto task force is to assist the U.S. regulator in establishing clear regulatory guidelines, creating realistic registration pathways, developing sensible disclosure frameworks and allocating enforcement resources effectively.

This news is fueling the enthusiasm of crypto bulls and accelerating investor optimism. According to Yahoo Finance, industry executives are submitting fresh ETF applications to the new SEC this week, aiming to provide investors with expanded exposure to various crypto assets when approved.

This highlights the growing interest from institutional investors and reflects the confidence of the world’s largest institutions in digital currency.

Much of Trump's crypto-related promises can be realized through strategic personnel changes. His administration has already appointed three pro-crypto regulators to lead key agencies, paving the way for a highly optimistic future for the digital asset.

Trump's selection of crypto advocate Paul Atkins to chair the SEC, coupled with the appointment of venture capitalist David Sacks as the incoming administration's "AI and Crypto Czar," serves as a strong positive signal for the industry, according to Yahoo Finance.

The greenback's decline to nearly two-week lows due to a lack of clarity on President Trump's tariff plans has kept financial markets on the edge. The recent fall in the dollar’s strength, which typically has an inverse relationship with Bitcoin, further contributes to the factors propelling the crypto boom.

ETFs to Consider

Below, we have mentioned a few ETFs for investors to increase their portfolios’ exposure to digital currencies, taking advantage of supportive regulations and the long-term bullish outlook for digital assets.

A more favorable regulatory environment, forecasts of further interest rate cuts and the possibility of a strategic Bitcoin reserve for the United States could further fuel investor optimism about the digital asset.

However, the potential increase in inflation and rise in risk-off sentiment among investors may create short-term volatility. Still, the favorable growth drivers could outweigh these negatives in the long run.

For investors with a long-term horizon, increasing exposure to the digital asset now and following a momentum investing strategy can be smart investment strategies, as cryptocurrency still has room for substantial momentum and further gains.

Investors can look at IShares Bitcoin Trust (IBIT Quick QuoteIBIT - Free Report) , Grayscale Bitcoin Trust (GBTC Quick QuoteGBTC - Free Report) , Fidelity Wise Origin Bitcoin Fund (FBTC Quick QuoteFBTC - Free Report) , ARK 21Shares Bitcoin ETF (ARKB Quick QuoteARKB - Free Report) and Bitwise Bitcoin ETF Trust (BITB Quick QuoteBITB - Free Report) to gain exposure to the digital currency.

Investors can also look at Grayscale Bitcoin Mini Trust (BTC Quick QuoteBTC - Free Report) , which is a cheaper alternative to Grayscale Bitcoin Trust.