This article is also available in Spanish.
US institutions are shaking up the cryptocurrency market, investing a staggering $13 billion in Spot Bitcoin ETF shares since its inception in January 2024. Many people were surprised by the move, given that traditional financial institutions were initially reluctant to enter the world of cryptocurrencies. . Origins.
Related reading
According to CryptoQuant CEO Ki Young Joo, 1,179 institutions currently hold a total of 193,064 BTC, indicating a significant shift in opinion towards cryptocurrency investments.
Institutional adoption is growing
Approval of Bitcoin ETFs by the US Securities and Exchange Commission (second) It contributed significantly to the rise in institutional interest. This legal approval has created new opportunities for financial institutions to provide investments in cryptocurrencies, allowing them to tap into more revenue streams.
US institutional ownership #Bitcoin The spot ETFs account for about 20%, with asset managers holding 193,000 BTC (per Form 13F filings). pic.twitter.com/9YTOEH3G5w
– Ki Young Ju (@ki_young_ju) October 22, 2024
A big piece of pie
Interestingly, big players like Millennium Management and Jane Street now hold more than 20% of the total market through various products. Bitcoin ETFs It is worth approximately 961,645 Bitcoin. This rapid uptake immediately shows that anxiety about money associated with digital currency has been shorter-lived.
Analysts believe that the more institutions interact with the Bitcoin ETF, the price will continue to rise. However, the current price of Bitcoin is around $67,000 and will likely reach $100,000 in early 2025, based on past trends, but more importantly, how people’s thinking is changing towards adopting Bitcoin as a legitimate asset class.
Options trading approved
Another major turning point came when the Securities and Exchange Commission (SEC) recently approved options trading for spot Bitcoin ETFs on NYSE American LLC and CBOE. This means that with traditional financial instruments, institutional investors can now effectively reduce the size of their investments Bitcoin Exposure.
There has been a big change for institutional buyers as they can now trade options on these ETFs. Not only does it make Bitcoin easier to use, but it also makes it more like regular banking. Now that options trading is possible, experts believe that more institutional buyers will enter the Bitcoin market.
The ability of institutional investors to trade ETF options is a turning point. Bitcoin is becoming increasingly accessible and integrated into standard banking services. Now that options trading is possible, experts expect more institutional investors to join Bitcoin.
Related reading
A bright future ahead
Bitcoin and its ETFs appear to have a promising future. Institutions’ continued interaction with this asset class is expected to have a positive impact on other digital assets. The SEC’s regulatory system provides a layer of protection that many investors appreciate. This clarity may lead to increased participation by traditional financial institutions, thus strengthening Bitcoin’s position in the investment landscape.
Overall, the combination of institutional demand and government support suggests that Bitcoin is more than just a passing fad; It has become an essential component of modern finance. Over time, it will be interesting to see how this changing landscape affects both the cryptocurrency market and broader economic trends.
Featured image from StormGain, chart from TradingView