BlackRock and Fidelity Continue to Accumulate Bitcoin Reserves
The battle for crypto ETF supremacy is heating up as BlackRock and Fidelity, two Wall Street giants, waste no time accumulating Bitcoin reserves. BlackRock’s iShares Bitcoin Trust ETF (iBIT) took in an additional $260 million on its 7th day of trading, bringing its total to $1.69 billion. Fidelity’s Wise Origin Bitcoin Trust ETF also kept pace with $158 million in inflows on Monday, totaling $1.44 billion since launch. Combined, the two ETFs now hold over 75,000 BTC worth over $2.6 billion.
Implications for BTC Price Volatility
The rapid accumulation of Bitcoin by BlackRock and Fidelity raises questions about the future path of BTC prices. As ETFs buy up scarce BTC supply more aggressively, some analysts predict increased volatility tied to their performance. If inflows waver and ETFs sell reserves en masse, BTC prices could suffer. However, for now, BlackRock and Fidelity continue their accumulation spree.
Grayscale Bleeds Out While Other ETFs Record Modest Inflows
While BlackRock and Fidelity dominate the ETF market, other players like Bitwise and Valkyrie recorded modest inflows of several thousand BTC. Meanwhile, Grayscale endured another $640 million in outflows from its Bitcoin Trust, totaling over $3.4 billion. However, none of these competitors come close to the massive firepower wielded by BlackRock and Fidelity.
Crypto Market Opens Up to Deeper Wall Street Pockets
The approval of spot Bitcoin ETFs by the SEC has allowed deeper Wall Street pockets to enter the crypto market by removing custody and security hassles. This has resulted in the meteoric rise of BlackRock and Fidelity’s ETFs. Fidelity Executive Director Jurrien Timmer believes that while SEC approval marks progress for crypto, it also introduces new instability as Wall Street and crypto become more intertwined.
Hot Take: BlackRock and Fidelity’s Accumulation Spree Fuels BTC Price Volatility
The rapid accumulation of Bitcoin reserves by BlackRock and Fidelity has significant implications for the future of BTC prices. As these ETFs buy up scarce BTC supply more aggressively, it is likely to result in increased volatility tied to their performance. If there are fluctuations in inflows and ETFs sell reserves en masse, it could negatively impact BTC prices. However, for now, BlackRock and Fidelity’s insatiable accumulation spree continues to propel the market forward.
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