On January 11th, the highly anticipated launch 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, as recently revealed by Bitwise CIO Matt Hougan.
According to Hougan’s findings, 944 companies with assets under management (AUM) exceeding US$100 million showcased their investments in US spot BTC ETFs. Notably, hedge fund companies like Steven Cohen’s Point72 Asset Management, Citadel Advisors, Millennium Management, and Elliot Investment Management have also embraced Bitcoin ETFs.
However, there has been some discussion regarding the nature of these transactions. Market observer Tyler Durden pointed out that the majority of these transactions were conducted off-chain. He explained, “Blackrock can take as many Bitcoins as it wants from Coinbase, and the transaction is recorded off-chain.”
On the other hand, Dave Weisberger of Coinroutes humorously remarked that “off-chain transactions” are 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, reaching its highest value in over a month at just over US$67,400. After experiencing a sharp drop in early May, falling below $57,000, Bitcoin began to recover the following week. It surpassed $65,000 on May 6 but experienced a quick reversal, dropping below $61,000 on May 10. Nonetheless, the bulls regained control, preventing further declines and maintaining price stability throughout the subsequent weekend.
Disclaimer: The views and opinions expressed in this article are solely for informational purposes and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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