The United States has emerged as a prominent player in the world of cryptocurrency investments, particularly with the recent surge of interest from institutional investors and North American states in Bitcoin ETFs. Wisconsin, in particular, has made a significant move by investing in BlackRock’s iShares Bitcoin Trust, marking a significant milestone for Bitcoin ETFs.
According to a 13F form submitted to the U.S. Securities and Exchange Commission (SEC), the Wisconsin investment board has purchased around $98.6 million worth of shares in the fund. This investment not only boosts confidence in the cryptocurrency market but also solidifies BlackRock’s position in the sector, which has experienced a substantial increase in trading activity and volume since receiving regulatory approval from the SEC in January.
The interest from U.S. states extends beyond Wisconsin. Keith Ammon, the New Hampshire State Representative and Vice President of Commerce and Consumer Affairs, recently proposed diversifying the state’s financial reserves by investing in Bitcoin ETFs. Ammon suggests that if New Hampshire had allocated just 5% of its rainy day fund to Bitcoin since 2016, the current value would be close to half a billion dollars, yielding a remarkable 10,000% return on investment.
Manuel Nordeste, Vice President of Digital Assets at Fidelity, further emphasizes the trend of major pension funds and banks allocating resources to Bitcoin ETFs. He reveals that 25% of pension fund managers already own digital assets, indicating a significant shift in the digital asset market.
Ammon proposes that by allocating just 1% of pension assets under management, which amounts to approximately $5.5 billion, it could not only surpass Bitcoin mining revenues but also create a supply shortage in relation to demand, further driving up the price of Bitcoin.
These developments underscore the increasing appeal of Bitcoin ETFs to institutional investors and states. With supportive regulations and growing interest, the stage is set for market expansion in the months to come.
Disclaimer: The views and opinions expressed by the author or any individuals mentioned in this article are solely for informational purposes and do not constitute financial, investment, or any other form of advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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