The Growing Popularity of Bitcoin Investment: Major Funds and Banks Flock to BTC ETFs
The recent report from Bloomberg has unveiled a significant increase in the number of hedge funds, pension funds, and banks investing in bitcoins through Exchange-Traded Funds (ETFs). According to the new 13F forms filed with the Securities and Exchange Commission (SEC) for the second quarter, there are now approximately 1,950 entities that have invested in BTC ETFs. This marks an increase of 701 new funds entering the bitcoin market.
Prominent entities such as Millennium Management, Capula, Schonfeld, Point72, and the State of Wisconsin Investment Board have all entered the BTC ETF market. Additionally, BTC spot ETFs have experienced substantial growth, with an increase of $17 billion since their creation in early January. Notably, BlackRock’s IBIT has emerged as a dominating force in the market.
Noelle Acheson, the author of the Crypto Is Macro Now newsletter, commented on the growing number of BTC ETF unit holders, emphasizing that it reflects the escalating interest of large entities in cryptocurrencies.
The surge in interest in BTC ETFs may be attributed to the anticipation of a bullish market towards the end of the year. A survey conducted among 423 users of a portal indicated that a significant 73% of respondents are expecting strong growth in the last quarter of the year.
Currently, the price of one bitcoin is approximately $59,200, reflecting a 2% decline over the past 24 hours, but still indicating a 1.55% increase since yesterday. Despite the positive market performance, the sentiment remains grim, as evidenced by the BTC fear and greed index registering at 25.
It is worth noting that the market sentiment is not aligned with the fundamental factors influencing the market. The BTC ETFs are operating dynamically with a growing number of clients, and new data on inflation in the US suggests an impending interest rate cut by the Federal Reserve on September 18. There is speculation in the market regarding the magnitude of the rate cut, with the Fed Watch Tool currently indicating a more subtle policy approach from the central bank.
Overall, the surge in BTC ETF investments from major funds and banks underscores the increasingly widespread adoption of cryptocurrencies in the traditional financial ecosystem. As the market anticipates potential bullish trends and responds to the evolving macroeconomic landscape, the role of BTC ETFs is set to become even more influential in the investment arena.
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