Institutional investors have made a significant entrance into the cryptocurrency market, particularly following the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States. Data indicates that these deep-pocketed investors have shown increased interest in the space, resulting in whales accumulating over $16 billion worth of BTC since the ETFs' launch.
According to insights from cryptocurrency analytics firm IntoTheBlock, the awaited institutional adoption in the crypto realm seems to be underway. Whale investors, defined by wallet addresses holding 1,000 or more BTC, have acquired nearly $16.8 billion worth of Bitcoin since the approval of spot Bitcoin ETFs earlier this year. This accumulation has seen them add 250,000 BTC to their portfolios, bringing their total holdings back to levels observed prior to the FTX exchange's collapse.
A notable change observed by IntoTheBlock is the shift in the composition of these whales. Traditional financial institutions are now seemingly taking the place previously occupied by crypto-native asset managers.
Additionally, there's been a noticeable reduction in Bitcoin selling pressure on the Coinbase exchange. The "Coinbase Premium Gap," which tracks the price difference between Bitcoin on Coinbase and other exchanges, has significantly narrowed. This suggests a decrease in selling pressure, likely due to stabilization in flows to spot Bitcoin ETFs and a surge in the cryptocurrency's price.
Recent filings with the U.S. Securities and Exchange Commission (SEC) have revealed hedge funds and Wall Street giants increasing their exposure to Bitcoin through spot Bitcoin ETFs in the first quarter of the year. For instance, Bracebridge Capital, managing roughly $12 billion in assets, invested $360 million across three funds.
Moreover, the state of Wisconsin has become the first local government entity to disclose an investment in Bitcoin, purchasing shares of BlackRock's iShares Bitcoin Trust (IBIT) worth nearly $100 million in the first quarter. This move aligns Wisconsin with several Wall Street giants, including JPMorgan Chase and Wells Fargo, which have disclosed BTC exposure through investments in spot Bitcoin ETFs, according to 13F filings.
JPMorgan, for instance, invested in various Bitcoin-related ETFs, including BlackRock's IBIT, Bitwise's BITB, Fidelity's FBTC, and Grayscale's GBTC, while Wells Fargo disclosed holdings in GBTC worth $141,817. Additionally, European banking giants BNP Paribas and BNY Mellon have also made similar disclosures, with BNP Paribas purchasing shares of IBIT during the first quarter.
May 2024, Cryptoniteuae