- The biggest question in crypto at the moment is whether institutional investors will allocate to the asset class in a big way, the report said.
- Bitwise noted that the total number of institutional investors holding bitcoin ETFs rose 14% in the second quarter.
- Bitcoin exchange-traded funds have been adopted by institutions at the fastest rate of any ETF in history, the asset manager said.
The main debate currently in the world of cryptocurrency revolves around whether large financial institutions and experienced investors will significantly invest in crypto assets.
In the second quarter, there was a 14% increase in the total number of institutional investors owning bitcoin ETFs, growing from 965 to 1,100 as reported.
According to Bitwise, the percentage of all Bitcoin ETF assets managed by these investors increased to 21.15% from its previous level of 18.74%. This means that institutions now control approximately $11 billion worth of Bitcoin ETFs at the end of the quarter.
I firmly believe that if institutional investors are willing to purchase Bitcoin even during periods of volatility, it suggests a promising future for this digital asset. With my years of experience in the financial markets, I have seen numerous instances where such interest from major players can drive prices skyward, particularly in a bull market. The potential growth could be immense if we consider that these institutions possess vast resources and influence over market trends. This development is an exciting sign for me, as it underscores the increasing maturity and recognition of Bitcoin as a legitimate investment option.
As a researcher delving into the world of cryptocurrencies, I’ve come across criticisms suggesting that Bitcoin ETFs are primarily owned by retail investors. However, upon closer examination, I find this assertion to be misleading. The truth is, these Bitcoin ETFs have been swiftly embraced by institutions at an unprecedented pace, making them the fastest-adopted ETFs in history.
According to the report, it’s predicted that the majority of ETFs will gather more momentum as time goes on. Furthermore, Bitcoin ETF contributions are anticipated to be greater in 2025 compared to 2024, and even bigger in 2026 than they were in 2025.
“The institutions are coming, and they’re coming in size,” the report added.
It was recently revealed, via a 13F filing, that financial titan Goldman Sachs (GS) maintains investments in seven out of the eleven Bitcoin Exchange-Traded Funds currently available within the United States.
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2024-08-21 11:46