Wall Street Banks Acquiring Spot Bitcoin ETFs, Fueling $100,000 Rally Speculation
Several major Wall Street banks in the United States, collectively managing around $469 billion in assets, are reportedly purchasing Bitcoin through BlackRock’s spot Bitcoin Exchange-Traded Fund (ETF), according to a recent filing from the US Securities and Exchange Commission (SEC). This move not only signifies a growing interest in Bitcoin among institutions but has also sparked speculation about the cryptocurrency’s price potentially reaching $100,000 in the near future.
The CEO of the Bitcoin-centric app Apollo Sats, Julian Fahrer, broke the news on the X platform, stating that the 13F SEC filings reveal US banks’ involvement in buying Bitcoin. Fahrer specifically highlighted American National Bank’s participation in Ark’s ETF as a significant development, as it breaks the seal on banks buying ETFs. In addition to banks, various prominent Wall Street corporations, including investment managers and family offices with assets ranging from $200 million to $10 billion, have also been accumulating Bitcoin through ETFs.
One notable player on the list is Park Avenue Securities LLC, with $9.9 billion in assets, which purchased 7,328 GBTC shares for $457,780. In total, Wall Street firms with a combined $15 billion in assets under management acquired exposure to Bitcoin ETFs worth around $4 million in the first quarter.
Matt Hougan, Chief Investment Officer at Bitwise, discussed institutional players’ Bitcoin purchases on the X platform and emphasized May 15 as a crucial date for investors to monitor. He explained that investors with over $100 million in assets under management are required to file reports called “13-F Filings” with the SEC, disclosing their publicly traded holdings. These filings are due 45 days after the end of each calendar quarter. While the filings provide a snapshot, Hougan believes that some of the names will come as a surprise to people.
BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), is closely competing with Grayscale’s GBTC in terms of assets under management, with a difference of only 50,000 BTC. According to a recent video from Crypto News Flash, IBIT currently holds 266,587 BTC valued at approximately $18.79 billion, while GBTC holds 315,941 BTC worth around $22.27 billion.
The heightened competition between IBIT and GBTC stems from the disparity in the two ETFs’ flows. While GBTC has experienced outflows since its launch in January, IBIT has seen significant inflows. Reports suggest that IBIT accumulates an average of 20,120 BTC weekly, while GBTC witnesses an average weekly sell-off of 22,620 BTC. If this trend continues, BlackRock could potentially surpass Grayscale as the leading Bitcoin ETF in the United States. It is worth noting that BlackRock also holds a substantial position in the ETF market and recently overtook MicroStrategy in terms of institutional Bitcoin holdings.
At the time of writing, Bitcoin is trading at $67,554, experiencing a 4.68% decrease in the past day, with a market capitalization of $1.3 trillion. However, the trading volume has increased by 61.8% to $47.9 billion, indicating a potential interest in buying.
While it remains uncertain whether Bitcoin will reach the $100,000 mark soon, the significant increase in trading volume suggests a bullish trajectory for the leading cryptocurrency.
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