The introduction of Bitcoin exchange-traded funds (ETFs) in the U.S. has attracted significant institutional interest, despite initial doubts from established firms regarding the legitimacy of this new crypto asset class.
Since the commencement of trading in January, American institutions have purchased $13 billion in shares of spot Bitcoin (BTC) ETFs, as reported by CryptoQuant CEO Ki Young Ju on Oct. 22 via X. Referencing Form 13F filings, which are used by wealth managers to report their U.S. equity investments quarterly, Young Ju revealed that 1,179 institutions have collectively acquired 193,064 BTC over the past 10 months.
Dominant players in traditional finance, such as Millennium Management and Jane Street, manage approximately 20% of the $65 billion, or 961,645 BTC, distributed among 11 spot Bitcoin ETFs launched by firms like BlackRock, Bitwise, Grayscale, and Fidelity.
The increasing acceptance of spot BTC ETFs among institutional investors suggests that the initial skepticism towards Bitcoin-related funds was fleeting. Analysts like Bloomberg’s Eric Balchunas and James Seyffart have frequently noted that asset managers tend to adapt gradually to new investment products.
Within less than a year of its launch, BlackRock’s Bitcoin product emerged as the fastest-growing ETF in the history of U.S. finance. Data indicated that BlackRock’s IBIT attracted the third-largest inflows, competing against ETFs that have existed for over two decades.
Market analysts have identified the rising demand for spot BTC ETFs, particularly in the U.S., as a significant driver for anticipated Bitcoin price increases. Currently, the value of one BTC is around $67,000, as a broader market correction has mitigated the asset’s recent upward momentum.
Firms like QCP Capital anticipate that short-term volatility may impact BTC and the digital asset markets leading up to the U.S. presidential elections. Nonetheless, researchers foresee a reduction in price fluctuations, aligned with historical trends. Overall market sentiment indicates that Bitcoin might trade above $100,000 by early 2025, with BTC advocates such as MicroStrategy’s Michael Saylor predicting a staggering $13 million for Bitcoin by 2045.
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