On January 11th, the highly anticipated release of exchange-traded funds (ETFs) for Bitcoin in cash caused a surge of investor optimism in the market, propelling the cryptocurrency industry to new heights.
During the first quarter of 2024, large institutions joined spot Bitcoin ETFs, resulting in their holdings reaching an impressive value of US$10.7 billion. This information was recently shared by Bitwise Chief Investment Officer (CIO), Matt Hougan.
According to Hougan’s survey, 944 companies with assets under management (AUM) exceeding US$100 million highlighted their investments in US spot BTC ETFs. Hedge fund companies, including Point72 Asset Management, Citadel Advisors, Millennium Management, and Elliot Investment Management, have also embraced Bitcoin ETFs.
It is worth noting that the majority of these transactions were conducted off-chain, as pointed out by market observer Tyler Durden. He explained that institutions like Blackrock can acquire as many Bitcoins as they want from Coinbase, and these transactions are recorded off-chain.
On a lighter note, Dave Weisberger of Coinroutes jokingly referred to these “off-chain transactions” as part of the “cash redemption” feature of US spot Bitcoin ETFs.
In the past 24 hours, the cryptocurrency market has witnessed a significant surge in Bitcoin, with its value reaching the highest point in over a month at just over US$67,400. After experiencing a sharp drop in early May, falling below $57,000, Bitcoin started to regain ground the following week. It surpassed $65,000 on May 6 but faced a temporary setback, dropping below $61,000 on May 10. However, the bulls took control, preventing further declines and maintaining price stability over the weekend.
Disclaimer: The views and opinions expressed in this article, including those of the author and individuals mentioned, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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