In January 2023, the US Securities and Exchange Commission approved Bitcoin ETFs. This has led to a significant increase in institutional investments in this newly-approved market. But US states also want to take advantage of the successes. ETFs By allocating part of their pension fund to make profits and diversify investments.
Wisconsin, Jersey City and Michigan allocate millions to Bitcoin ETFs
Wisconsin is the first state that has taken this step, and it will be in May 2023. allocated BlackRock’s iShares Bitcoin Trust, ETF, received approximately $98,6 million or 2% from its pension fund.
Since Wisconsin, another two states have allocated state pension funds for Bitcoin ETFs. NewsBTC published a report on Thursday. reported Steven Fulop is the Mayor of Jersey City. He announced that his pension fund would be investing in Bitcoin ETFs.
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Michigan is the latest state to jump on board with Bitcoin ETF investments. filing The State of Michigan Retirement System, which is the State of Michigan Retirement System, reported on Friday that they owned 110,000 shares of the ARK Bitcoin ETF run by Ark Invest worth $6.6 million as of June 30, 2018.
Jersey City, however, is still the only ETF that reveals the exact percentage invested in Bitcoin ETFs. asset manager A manager of the Fund’s Allocation will be chosen.
This is a note of the significant growth that has been achieved by the Bitcoin ETF over the last seven months, both amongst institutions, and also now in these states. inflows Assets under management have surpassed the landmark of $17 billion, surpassing ETFs based on technology.
BTC price surge fuelled by Spot ETFs
Bitcoin has been steadily rising over the past 2 weeks. The price had fallen to a low of $53,500 in early July, a 6 month-low. According to new research, however report CryptoQuant’s on-chain data and analytics has shown that this recovery in price is still largely based on Bitcoin spot ETFs, rather than an influx of new investors.
CryptoQuant’s report on Bitcoin prices and investor positions over the last 8 years found that Bitcoin has been a long-term investment. bull cyclesThe Bitcoin price reached its peak when the number new users crossed a threshold. This indicates a significant increase in demand. “fear of missing out” Inflows are driven by (FOMO).
The firm claims that this current Bitcoin bull-cycle does not show the same pattern of investors inflowing at the top of the price. Reports indicate that recent surges in inflows, seen during the first three months of this year, are only temporary. longer-term cycle tops.
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It is more likely that the recent Bitcoin price rise has been due to an influx of spot Bitcoin ETFs, rather than the influx of new crypto investors.
Although spot ETFs are supporting the Bitcoin price the report suggests that an even more sustained rise will be determined by the return of new investors.
As I was writing this, the biggest cryptocurrency in the market traded at $67.530. This is an increase of almost 5% within a 24-hour period.
Chart from TradingView.com, image by DALL-E
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Source: www.newsbtc.com
