Fri, July 26, 2024 at 23:35

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some intriguing news about Bitcoin ETFs and their impact on institutional investments.

  • 
• Annie

  • Oh, that sounds interesting!😊 What exactly happened?

  
• 

  Kang-hoon

  • In January 2023, the US Securities and Exchange Commission (SEC) approved Bitcoin ETFs, which has led to significant institutional investments in this new market.

• Annie

  • Wow, so institutions are really getting into Bitcoin now?

  • Which states are involved?

  
• ADward

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• 

  Kang-hoon

  • Yes, indeed.

  • Wisconsin was the first state to allocate a portion of its pension fund to Bitcoin ETFs, investing approximately $98.6 million in May 2023.

• Annie

  • That's a lot of money!

  • Have any other states followed suit?

  
• 

  Kang-hoon

  • Yes, Jersey City and Michigan have also joined in.

  • Jersey City is updating its paperwork with the SEC to allow its pension fund to invest in Bitcoin ETFs, and Michigan reported owning $6.6 million worth of shares in the ARK Bitcoin ETF as of June 30th.

• Annie

  • Interesting!

  • So, how much has the Bitcoin ETF market grown since its approval?

  
• 

  Kang-hoon

  • The Bitcoin ETF market has gained significant traction over the past seven months, with assets under management surpassing the $17 billion milestone, eclipsing tech-based ETFs.

• Annie

  • That's impressive!

  • How has this affected Bitcoin's price recently?

  
• 

  Kang-hoon

  • Bitcoin's price has steadily recovered over the past two weeks, rebounding from a 6-month low of $53,500 at the beginning of July.

  • It is now trading at $67,530, up nearly 5% in the last 24 hours.

• Annie

  • Wow, that's a significant rebound!

  • Is this price recovery driven by new investors?

  
• 

  Kang-hoon

  • According to a report by CryptoQuant, the price recovery is more reliant on inflows into spot Bitcoin ETFs rather than a surge of new investor inflows.

• Annie

  • So, the current bull cycle isn't driven by new investors.

  • What does that mean for the future?

  
• 

  Kang-hoon

  • The report suggests that a more sustainable upside for Bitcoin will depend on the return of new investor demand.

  • The recent spike in new inflows appears to be a temporary wave.

• Annie

  • Got it.

  • So, overall, would you say this news is good or bad for the market?

  
• 

  Kang-hoon

  • I would say it's good news.

  • The approval of Bitcoin ETFs and the subsequent institutional investments indicate growing acceptance and legitimacy of Bitcoin in the financial markets.

  • 

  • This could lead to more stability and growth in the long term.

• Annie

  • That's reassuring to hear.

  • Thank you for the detailed explanation, Kang-hoon!🙌

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Always happy to provide insights.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.