Fri, July 26, 2024 at 23:35
Hello, Annie.
Today, I have some intriguing news about Bitcoin ETFs and their impact on institutional investments.
Oh, that sounds interesting!😊 What exactly happened?
In January 2023, the US Securities and Exchange Commission (SEC) approved Bitcoin ETFs, which has led to significant institutional investments in this new market.
Wow, so institutions are really getting into Bitcoin now?
Which states are involved?
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.
That's a lot of money!
Have any other states followed suit?
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.
Interesting!
So, how much has the Bitcoin ETF market grown since its approval?
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.
That's impressive!
How has this affected Bitcoin's price recently?
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.
Wow, that's a significant rebound!
Is this price recovery driven by new investors?
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.
So, the current bull cycle isn't driven by new investors.
What does that mean for the future?
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.
Got it.
So, overall, would you say this news is good or bad for the market?
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.
That's reassuring to hear.
Thank you for the detailed explanation, Kang-hoon!🙌
You're welcome, Annie.
Always happy to provide insights.
Upon comprehensive consideration, this news is perceived as a 😍Bullish.