ETFs, MicroStrategy, El Salvador, Cetera: Top Players' Bitcoin Bets This Week
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Bitcoin Investment Landscape Cools Amid Market Turbulence
On March 14, Bitcoin ETF inflows totaled $132.7 million, representing a slowdown from earlier in the week. BlackRock's Bitcoin ETF led with $345.4 million in inflows, while Grayscale's Bitcoin Trust (GBTC) experienced outflows of $257.1 million. In terms of BTC, the net inflow for the day was 1,874 BTC, with BlackRock's ETF gaining 4886 BTC and Fidelity while GBTC lost 3,638 BTC. The Newborn Nine, excluding Grayscale, received a total inflow of $389 million.
Despite a considerable drawdown in Bitcoin prices, the data indicates cooling off in the landscape of Bitcoin investment products, yet net inflows continued. The day's mixed results revealed a dynamic market, with BlackRock's strong inflows standing out among the providers, underlining a fluctuating but still resilient interest in Bitcoin investment products on a day of volatile market conditions.
JPMorgan's recent report reveals that both retail and institutional investors are acquiring both gold and bitcoin, debunking the notion of a shift from gold to bitcoin. The bank notes a substantial increase in futures positions for both assets since February, raising concerns about the risk of mean reversion. Additionally, MicroStrategy's significant bitcoin purchases are seen as contributing to the current crypto rally and potentially amplifying future market downturns.
El Salvador's Bitcoin Stash Swells as Bukele Unveils $406 Million Cold Storage 'Piggy Bank'
El Salvador's President Nayib Bukele revealed that the country's Bitcoin holdings far exceed previous estimates, with a transfer of a significant amount into a cold wallet to be stored in a physical vault, dubbing it the nation's first "Bitcoin piggy bank." The wallet reportedly contains 5,689 Bitcoin, valued at $406 million at the time of announcement, implying a significant increase from the previously believed 2,848 Bitcoin.
This move comes amidst Bukele's re-election and ongoing international scrutiny over Bitcoin's legal tender status in El Salvador. The country's Bitcoin investment has seen substantial profits, with the value soaring to over $74 million in profit following a recent surge in Bitcoin's price.
This investment strategy has sparked discussions on El Salvador's potential to become one of the wealthiest nations through its embrace of Bitcoin, despite concerns over the volatility and legal challenges associated with cryptocurrency.
MicroStrategy's Insatiable Bitcoin Hunger: A $15 Billion BTC Binge
On March 11, 2024, MicroStrategy, under CEO Michael Saylor, announced that it had acquired an additional 12,000 Bitcoin at an average price of $68,477, totaling $821.7 million, funded by convertible notes and excess cash. This purchase increased MicroStrategy's Bitcoin holdings to 205,000 BTC, with a total investment of roughly $6.91 billion, surpassing BlackRock's 195,985.31 BTC at that time. MicroStrategy aims to use Bitcoin as a treasury reserve asset, emphasizing its long-term investment strategy in cryptocurrency.
Additionally, on March 13, MicroStrategy announced plans to raise $500 million in convertible debt offerings to further increase its Bitcoin holdings, having previously sold about $800 million in convertible debt to acquire Bitcoin. This spree has brought its total BTC worth over $15 billion, making MicroStrategy the public company with the largest Bitcoin holdings, surpassing Tesla and Coinbase.
MicroStrategy's market capitalization surged to $29.96 billion, ranking it as the world's 642nd most valuable company. The firm's stock value has risen by 145% in a month, and it plans to sell convertible senior notes to institutional buyers, with the proceeds intended for further Bitcoin acquisitions and general corporate purposes.
Cetera Embraces Bitcoin's Allure, Greenlights Top Crypto ETFs for $190B Portfolio
Cetera Financial Group, with $190 billion in assets under management, has approved four bitcoin ETFs for its financial professionals to consider for client portfolios. The approved funds include BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), Franklin Bitcoin ETF (EZBC), and Invesco Galaxy Bitcoin ETF (BTCO). Cetera plans to offer educational training to facilitate advisors' understanding and potential allocation of bitcoin ETFs.
Notably, the firm emphasized its preference for ETFs offered by established financial entities, citing their robust track records and resources. Among the approved ETFs, the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund have garnered approximately $15.9 billion and $9.2 billion in assets, respectively.
Cetera opted not to approve the Grayscale Bitcoin Trust ETF, due to its higher fee structure, and two other bitcoin ETFs with higher assets under management than the approved Franklin and Invesco products. This move reflects a growing trend among wealth managers to explore the potential of bitcoin ETFs for client portfolios.
NYSE Proposes Listing of 7RCC's Eco-Friendly Bitcoin ETF Ahead of Halving Surge
The New York Stock Exchange (NYSE) has proposed the listing of 7RCC's environmentally-conscious spot Bitcoin exchange traded fund (ETF) to the US Securities and Exchange Commission (SEC). This ETF consists of 80% Bitcoin along with carbon credit futures, aiming to balance Bitcoin exposure with environmental sustainability.
The SEC's approval of eleven spot Bitcoin ETFs in January marked a significant milestone, with 7RCC's filing being the latest in this trend. The carbon credit futures in 7RCC's ETF are linked to emissions allowances issued under regulatory frameworks.
7RCC's co-founder and CEO, Rali Perduhova, expressed optimism about the future of the asset, anticipating a potential Bitcoin price surge to $200,000 by year-end, especially with the upcoming Bitcoin halving. Additionally, the ETF will be custodyed by Gemini, offering investors a single-trade approach to digital assets and environmental sustainability, aligning Bitcoin's innovation with the progressive realm of Carbon Credit Futures.
Thai SEC Opens Door to Institutional Bitcoin ETF Investments
The Thai Securities and Exchange Commission (SEC) has made an exception by allowing local asset management firms to create private funds for investing in spot Bitcoin ETFs on U.S. exchanges. This decision follows the denial of spot Bitcoin ETF launch in Thailand earlier this year.
The SEC has reclassified spot Bitcoin ETFs as securities rather than digital assets, making them accessible only to accredited investors such as institutions and ultra-high-net-worth individuals due to the high risk involved.
The SEC's approval is a response to the increasing investor interest in the cryptocurrency. This exception signifies a significant shift in the regulatory approach towards Bitcoin ETF investments in Thailand, reflecting the evolving landscape of digital asset acceptance within traditional investment frameworks.
Conclusion
Despite a market downturn, Bitcoin investment persists, with BlackRock leading ETF inflows and MicroStrategy making massive purchases. El Salvador's Bitcoin holdings are larger than expected, fueling debate about its future as a Bitcoin-embracing nation.
FAQs
1. How much Bitcoin does MicroStrategy own?
MicroStrategy currently holds 205,000 Bitcoin, the most of any publicly traded company. This represents a total investment of roughly $6.91 billion.
2. Is there a shift from gold to Bitcoin?
JPMorgan's report suggests no. Both retail and institutional investors are acquiring both gold and Bitcoin, with futures positions increasing for both assets since February.
3. How much Bitcoin does El Salvador hold?
El Salvador recently revealed a "Bitcoin piggy bank" containing 5,689 Bitcoin, significantly more than previously estimated. This represents an investment of over $406 million.
4. What are the implications of El Salvador's Bitcoin investment?
El Salvador's Bitcoin holdings have yielded significant profits but raise concerns about volatility and legal challenges. The nation's strategy sparks discussion about its potential wealth through Bitcoin adoption.
This article has been refined and enhanced by ChatGPT.
