$13 Billion Bitcoin ETF Surge: US Institutions Lead The Charge

Christian Encila

8 months ago

3 mins read

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American institutions are making ripples in the cryptocurrency market, having invested a staggering $13 billion in spot Bitcoin ETF shares since its inception in January 2024. Many people are surprised by this move, given that traditional financial institutions were first hesitant to enter the world of digital assets.

According to CryptoQuant CEO Ki Young Ju, 1,179 institutions currently own a total of 193,064 BTC, indicating a major shift in opinion towards crypto investments.

Institutional Adoption Grows

The adoption of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) has contributed significantly to the spike in institutional interest. This legal approval has created new opportunities for financial institutions to provide cryptocurrency investments, allowing them to tap into more revenue streams.

Institutional ownership of U.S. #Bitcoin Spot ETFs is around 20%, with asset managers holding 193K BTC (per Form 13F filings). pic.twitter.com/9YTOEH3G5w

— Ki Young Ju (@ki_young_ju) October 22, 2024

Big Chunk Of The Pie

Interestingly, big players such as Millennium Management and Jane Street now hold over 20% of the total market through various Bitcoin ETFs worth about 961,645 BTC. This rapid absorption immediately shows that the anxiety over money related to digital currency was shorter-lived.

Analysts think the more the establishments engage with Bitcoin ETF, the price will keep going. Even so, the current price of Bitcoin stands at around $67,000 and is likely to go to $100,000 in early 2025, based on past trends, but more importantly, how people’s thinking is changing towards embracing Bitcoin as a legitimate asset class.

BTCUSD trading at $66,504 on the daily chart: TradingView.com

Options Trading Approved

Another major turning point came when the SEC lately approved options trading for spot Bitcoin ETFs on NYSE American LLC and CBOE. This implies that with conventional financial instruments, institutional investors can now effectively reduce their Bitcoin exposure.

Bitcoin price action in the last 24 hours. Source: CoinMarketCap

A big change has happened for institutional buyers since they can now trade options on these ETFs. It not only makes Bitcoin easier to use, but it also makes it more like regular banking. Now that options trading is possible, experts think that more institutional buyers will get into the Bitcoin market.

Institutional investors’ ability to trade ETF options is a turning point. Bitcoin becomes increasingly accessible and integrated into standard banking. Now that options trading is possible, experts expect more institutional investors to join Bitcoin.

A Bright Future Ahead

Bitcoin and its ETFs appear to have a promising future. Institutions’ continued engagement with this asset class is anticipated to have a favorable impact on other digital assets. The SEC’s regulatory system provides a layer of protection that many investors value. This clarity may lead to increasing participation from traditional financial institutions, thus cementing Bitcoin’s position in the investment scene.

Overall, the combination of institutional demand and governmental support suggests that Bitcoin is more than a passing fad; it is becoming an essential component of modern finance. As time passes, it will be interesting to see how this changing landscape affects both the digital currency market and broader economic trends.

Featured image from StormGain, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.