- In just eight weeks, ten Bitcoin ETFs have amassed assets exceeding $55 billion, with their volume doubling to $110 billion.
- IBIT BlackRock now holds over $14.17 billion in Bitcoin, outstripping MicroStrategy’s holdings and highlighting significant institutional engagement with cryptocurrency.
Institutions representing trillions of dollars in assets are set to plunge into the realm of spot Bitcoin (BTC) exchange-traded funds (ETFs) by the end of June, as reported by the crypto-native asset manager Bitwise.
This surge in institutional interest is not only a testament to Bitcoin’s growing acceptance but also signals a significant shift in the investment landscape.
Unprecedented Institutional Interest
Bitwise’s Chief Investment Officer, Matt Hougan, revealed that the firm is engaged in intensive due diligence discussions with major corporations, wirehouses, and institutional consultants.
These talks revolve around increasing their exposure to Bitcoin in the forthcoming months, highlighting a broader acceptance and understanding of digital assets among traditional financial entities.
The appeal of spot Bitcoin ETFs has drawn a diverse group of investors, from individual retail investors to family offices, hedge funds, and venture capital firms. This eclectic mix underscores the wide-ranging allure of Bitcoin as a valuable addition to investment portfolios.
Hougan emphasized the importance of not just current buyers but also potential future investors in driving the demand for Bitcoin ETFs, suggesting a sustained interest that could propel the market further. For a deeper dive into these developments, you can check this Youtube video.
Market Impact and Price Surge
Eric Balchunas, a senior analyst at Bloomberg, echoed this sentiment in a recent tweet, marveling at the rapid success of BTC ETFs.
First two months officially in the books (it's felt like six) and the ten bitcoin ETFs now have over $55b in assets with exactly double that in volume at $110b. If these were the numbers at the end of year I'd call them a success. To do it in eight weeks is simply absurd. pic.twitter.com/8YvzQZdYyJ
— Eric Balchunas (@EricBalchunas) March 11, 2024
This explosive growth is mirrored in the performance of Bitcoin’s price, which has seen a staggering increase of more than 50% since the inception of Bitcoin ETFs on January 11.
The price soared from $45,603 to $68,583, a rise attributed by several analysts to the overwhelming institutional appetite for Bitcoin ETFs, as evidenced by nearly $9 billion in net inflows since their launch.
🗞️ Crypto News
According to BitMEX Research, BlackRock's IBIT holds 197,943 #Bitcoin, worth over $13.5 billion as of March 8, outpaced MicroStrategy’s $BTC holdings.#CryptoNews
— CoinMarketCap (@CoinMarketCap) March 11, 2024
A tweet from CoinMarketCap further highlights the burgeoning institutional involvement in Bitcoin. According to BitMEX Research, IBIT BlackRock holds 197,943 BTC, valued at over $13.5 billion on March 8, and today it around $14.17 billion. Its surpassing MicroStrategy’s BTC holdings.
This not only underscores the significant investment by major financial players but also signals a growing confidence in Bitcoin as a viable asset class.
Hougan’s bullish stance on Bitcoin ETFs has been consistent, predicting an even “bigger wave” of institutional capital influx into the products, which he believes will push Bitcoin’s price “substantially higher.”
As the year progresses, the anticipation of further inflows into the 10 approved spot Bitcoin ETF products is palpable, with expectations set high for the second half of the year, building on previous reports by ETHNews.
At the time of writing, the price of BTC has rose 2.47% in the last 24 hours, reaching a price of $71,630.57. This represents an increase of 9.96% over the past 7 days.