- BlackRock reports that 80% of Bitcoin ETF buyers are direct investors, with 75% being first-time buyers of iShares products.
- SEC approves options tied to spot Bitcoin prices, giving institutional investors new tools to hedge and speculate efficiently.
- Bitcoin surged above $68,300, marking a 140% year-over-year increase, while market dynamics turned favorable post-Fed rate cut.
The head of BlackRock’s ETF division, Samara Cohen, revealed in an interview with CNBC that the majority of Bitcoin investment demand stems from tools like exchange-traded funds (ETFs), rather than direct purchases from crypto exchanges. Notably, 80% of Bitcoin ETF buyers are direct investors, with 75% being first-time buyers of BlackRock’s iShares products.
Additionally, Cohen emphasized that BlackRock’s efforts to educate investors about ETFs led to a surprising outcome. Instead of teaching ETF investors about crypto, they found themselves educating crypto investors about the benefits of ETF products.
Bitcoin ETF Options Get approval from the SEC
On Friday, the US Securities and Exchange Commission (SEC) allowed 11 Bitcoin ETFs to get listed and trade options based on the current value of Bitcoins on the New York Stock Exchange. It represents another step for large investors to gain or manage their Bitcoin exposure without ever touching the underlying coin.
The approval provides more opportunity to speculate and hedge the investment. These bitcoin options, which currently need prior approval of the Commodity Futures Trading Commission (CFTC) before floating, afford an effective means of dealing with bitcoin volatility.
New Trend in the Market Pulls Bitcoin Price Up
Bitcoin was traded above 68 300 USD which is the highest value of this cryptocurrency since July. Gaining 140% compared to the same period last year, the cryptocurrency has grown in response to the SEC’s approval and other market shifts as it ends the third quarter. All of the 11 spot bitcoin ETFs as we all know have a total market capitalization crossing over $63 billion, $20 billion plus in assets under management, and $2.1 billion in assets under management in the past 5 trading sessions respectively. Of these flows, BlackRock’s trade accounted for one of every two of the trades.
This rally is further driven by a positive change of trend in market forces ahead of maintaining the affordability of products. Recently, the Federal Reserve reduced interest rates by 50 basis points and such movements provided positive sentiments among investors and a huge leap to the overall open interest of Bitcoin.
The Expert’s take on Crypto Growth: Institutional Investment
Bitcoin was not the only market that experienced these gains; the more general market in cryptocurrencies also posted a rise in value with the rise of the altcoins over US equities. The rate cut by the Federal Reserve amid years of systematic tightening has provided the harmed crypto market with fresh liquidity, moreover, attracting more institutions.
In total, there are signs that the Bitcoin Q4 picture is positive as we move into the final three months of the year. Bitcoin has always performed and on average posted a figure above 50% for Q4 since 2014 and given the market sentiment and performance we are yet to see the bulls continue.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
