Bitcoin’s institutional adoption high
Investor caution over monetary policy tightening and its potential impact on risky assets has caused Bitcoin to struggle with volatility in recent weeks.
The latest US Consumer Price Index (CPI) data for January, which was released last week, indicated that inflation continued to rise above the objective of 2 percent, suggesting that the Federal Reserve may continue to retain its hawkish posture for longer than anticipated.
Price action shows Bitcoin bulls and other risk-sensitive assets in jeopardy because higher interest rates often make investors less inclined to make speculative investments. The Fed’s position on Bitcoin and increased institutional interest, give the market hope. The present asset price fell below the $95.5K market.
Institutional adoption high
According to US SEC filings, global asset managers, including wealth management firms, hedge funds, and pension funds, increased their allocations to US exchange-traded funds linked to the price of bitcoin in the fourth quarter of 2024, as the price of the largest cryptocurrency in the world rose 47%.
In its quarterly 13-F filing with the Securities and Exchange Commission, the Wisconsin State Investment Board reported that as of December 31, its holdings in bitcoin ETFs had more than doubled to 6 million shares of the iShares Bitcoin Trust ETF IBIT.O.
Tudor Investment Corp. is a systematic hedge fund manager with $55 billion under management, iShares ETFs exposure grew from 4.5 million to eight million units.
The value of those holdings increased from $159.9 million at the end of September to $426.9 million in tandem with the surge of Bitcoin.
Mubadala Investment Co., an Abu Dhabi-based sovereign wealth fund, has revealed its first foray into bitcoin exchange-traded funds (ETFs). 8.2 million shares of the iShares ETF were worth $436.9 million in the fourth quarter.
Historical trends linked to a crucial indicator suggest that bitcoin (BTC) has plenty of potential to rise, especially as rising US inflation could threaten the current increase.
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