As a seasoned crypto investor with a background in traditional finance, I must admit that the recent moves by institutions like Emory University and the State of Michigan Retirement System into Bitcoin ETFs are nothing short of exhilarating. After years of skepticism and hesitation from institutional investors, it seems that the tide is finally turning, and cryptocurrencies are gaining recognition as a legitimate asset class.
Emory University has gained attention as it was the initial college endowment to disclose investments in a Bitcoin-based Exchange-Traded Fund (ETF).
As per a document submitted on October 25th, Emory University holds approximately 2.7 million shares in the Grayscale Bitcoin Mini Trust (GBTC), which equates to a value of roughly $15.1 million.
Balchunas noted that the quarterly public reports submitted by large U.S. investment managers now include institutions of every type in Bitcoin ETF filings (endowments, banks, hedge funds, insurance companies, advisors, pensions, private equity firms, holding companies, venture capital firms, trusts, family offices, and brokerages).
Starting from January, the appearance of Bitcoin Exchange-Traded Funds (ETFs) has been instrumental in solidifying Bitcoin’s status as a legitimate investment class. This development has ignited significant curiosity among institutional investors, evident in the growing number of applications from various organizations.
An illustration: The Michigan State Retirement System recently disclosed ownership of an investment in the Bitcoin ETF offered by ARK 21Shares, valued at about $6.6 million. This indicates that not just individuals but also significant organizations are exploring opportunities in digital currencies.
2024 marked a significant shift in the ETF sector as cryptocurrency funds played a major role, accounting for 13 out of the top 25 ETF launches based on inflows up until August. Notably, Bitcoin stood out in this market, with six of the most successful ten ETF launches this year being focused on it.
Moreover, multiple Ethereum Exchange-Traded Funds (ETFs) launched in July have attracted over a billion dollars in total investments.
The success of the Bitcoin ETF market has spurred issuers to consider ETFs for other cryptocurrencies, such as Solana and XRP. In July, the Cboe sought regulatory clearance for VanEck and 21Shares’ planned Solana ETFs.
Simultaneously, Canary Capital and Bitwise put forth proposals for an XRP Exchange-Traded Fund (ETF) in October, suggesting a growing institutional interest in diverse cryptocurrencies.
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2024-10-28 22:12