Bitrabo Editorial
After the US Securities and Exchange Commission (SEC) approved Bitcoin ETFs in January, institutional investors and US states are increasingly showing interest in this market. Wisconsin’s investment board has recently made a significant investment of around $100 million in BlackRock’s iShares Bitcoin Trust ETF.
US States Join the Bitcoin ETF Market
According to a recent SEC filing, Wisconsin’s investment board purchased almost $100 million worth of shares in the BlackRock ETF, boosting BlackRock’s presence in the growing market that has seen a surge in inflows and trading volume since the regulatory approval.
Furthermore, reflecting the growing interest of US states in exploring Bitcoin ETF investment opportunities, Keith Ammon, New Hampshire State Representative and Vice Chair of Commerce and Consumer Affairs, has initiated talks about diversifying the state’s financial reserves by investing in Bitcoin ETFs.
Potential Expansion of BTC ETFs
Recent analysis by Bitrabo underscores the potential benefits of investing in Bitcoin ETFs. New Hampshire’s hypothetical allocation of just 5% of its 2016 rainy day fund to Bitcoin, totaling $4.65 million, could have turned into almost half a billion dollars ($473 million) today, marking a substantial 10,000% return on investment.
Ammon also notes Manuel Nordeste, Fidelity’s Vice President of Digital Assets, highlighting the increasing interest from major pension funds and big banks in investing in Bitcoin ETFs. Nordeste reveals that a quarter of pension managers personally hold digital assets, signaling a notable shift in the digital asset market’s interest.
Ammon suggests that if only 1% of the $5.5 trillion state pension assets under management were to flow into Bitcoin, it could surpass mining revenue, creating a supply shortage relative to demand and potentially driving up Bitcoin prices further.
Overall, these developments showcase the rising appeal of Bitcoin ETFs among institutional investors and US states alike. With ongoing regulatory approvals and growing interest, the Bitcoin ETF market seems primed for further expansion in the coming months.
Currently, the largest cryptocurrency in the market is trading at $61,600, struggling to consolidate above the previous high of $63,000.
Image source: Shutterstock, chart from TradingView.com