The United States has emerged as a prominent player in the cryptocurrency investment landscape, particularly with the recent surge of interest from institutional investors and North American states in Bitcoin ETFs. Wisconsin, in particular, has made a significant investment in BlackRock’s iShares Bitcoin Trust, signaling a new era for Bitcoin ETFs.
According to a 13F form filed with the U.S. Securities and Exchange Commission (SEC), the Wisconsin investment board purchased approximately $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, 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. According to Ammon, 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, representing a 10,000% return on investment.
Furthermore, Manuel Nordeste, vice president of digital assets at Fidelity, highlighted the trend of large pension funds and banks allocating resources to Bitcoin ETFs. He revealed that 25% of pension fund managers already possess digital assets, indicating a significant shift in the digital asset market.
Ammon suggests that a mere 1% infusion of pension assets under management, amounting to approximately $5.5 billion, could not only surpass Bitcoin mining revenues but also create a supply shortage relative 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 coming months.
Disclaimer: The views and opinions expressed by the author or individuals mentioned 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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