The Rise of Institutional Investment in Bitcoin ETFs
In a significant move, Pine Ridge Advisers has recently invested $205 million in major U.S. Bitcoin spot ETFs, highlighting the increasing institutional demand for cryptocurrency. This investment by Pine Ridge Advisers is part of a broader trend where various entities such as banks, corporations, and local governments in the U.S. are purchasing Bitcoin through financial instruments, indicating a growing interest and acceptance of BTC among traditional financial institutions.
Pine Ridge Advisers Invests $205 Million in 3 Bitcoin ETFs
The asset manager has dedicated 23% of its $890 million capital to Bitcoin-related funds, with investments in various ETFs. Specifically, Pine Ridge Advisers allocated $93.38 million to the Fidelity Wise Origin Bitcoin Fund (FBTC), $83.17 million to BlackRock’s iShares Bitcoin Trust (IBIT), and $3.42 million to the Bitwise Bitcoin ETF (BITB). The remaining funds are diversified across other equities.
- The Fidelity Wise Origin Bitcoin Fund received $93.38 million
- BlackRock’s iShares Bitcoin Trust saw an investment of $83.17 million
- The Bitwise Bitcoin ETF received an allocation of $3.42 million
According to Bloomberg ETF analyst Eric Balchunas, Pine Ridge Advisers owns $205 million worth of BTC through these ETFs, which represents 23% of their total assets under management (AUM).
Pine Ridge Advisers provides advice to retail investors on managed account investments starting at $50 million. The firm manages a diverse portfolio of stocks across various industries, including financials, materials, communications, real estate, and consumer discretionary sectors.
Increased Inflows into US Bitcoin Spot ETFs
On May 13 and 14, more than $166 million flowed into U.S. Bitcoin spot ETFs, indicating a surge in investor interest in these financial products. Data from Coinglass shows that the majority of ETF inflows were directed towards well-known entities such as Grayscale, BlackRock, Fidelity, Ark 21Shares, Bitwise, and VanEck.
- Grayscale saw significant inflows during this period
- Funds were also directed to BlackRock, Fidelity, and other major players
- Ark 21Shares, Bitwise, and VanEck also attracted investor capital
Growing Interest in Bitcoin Among Institutions
The trend of institutional investors turning to Bitcoin is further illustrated by the State of Wisconsin’s $99 million investment in BlackRock’s iShares Bitcoin Trust (IBIT) through The State of Wisconsin Investment Board (SWIB). This move highlights not only the interest from companies and wealthy individuals but also from governmental bodies in embracing BTC as a viable asset.
Bitcoin spot ETFs witnessed a notable outflow of $84.70 million on May 10, but the market rebounded strongly on May 15 as BTC price surged by almost 7% following the release of inflation data in the U.S.
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