If you've been reading my pervious articles then you know I've been pretty heavy on how currently ETFs buy and sell pressure have mainly been a result of retail investors which are your every day mom and pop shop people. What we saw that wasn't happening was large firms and other major players with massive amounts of funds simply not entering into the space at any major scale at all.
I caught wind on why that was and it seems like it has been because those larger firms use what is known as a clearing house. These clearing houses have to be on the ball as well in order to flow those funds in and out of ETFs but there's a lot of backend work that goes into that. This work was expected to start being done in June which we are not far away from and we are already starting to see small hints of that happening at the moment which is quickly boosting BTC prices again.
BlackRock
Yes, where would this article be without the mention of blackrock which is the largest investor into bitcoin of all of the firms so far. They also were the biggest to massively pressure the SEC into finally getting it approved and will most likely being the ones that get the ETH etf approved as well. (Speculation)
News broke today about Q1 results so far for BlackRock and these other large fund holders. It's reported that 414 large cap holders are now involved which dwarfs any other ETF launched by miles!
So who owns it all? The other day I wrote a bit about Wisconsin Investment board which is actully the city invested they are reported to be the 6th largest ETF holder of bitcoin. And how is that working out for them?
Well based on the price increase of BTC lately it would seem rather well and other cities are going to start seeing this as well and FoMo in just like your every day investor does. I'm not talking about the city investing all of their funds into Bitcoin ETF but at least a portion even 5% would be massive and it's often looked at as a way to hedge against the constant increasing inflation that's hitting the world including the USA and major cities which honestly look like crap! There was a time when I enjoyed going to NYC would I today? Nope!
Banks
We have even saw banks starting to build up ETFs as well. With CEOs, Banks and other large cap funds we are seeing massive adoption and it's actully really bullish seeing banks involved in this asset because it wasn't all that long ago when banks legit would block you from buying bitcoin with YOUR money. That still blows my mind and is another great reason I feel you should own some bitcoin and other crypto outright yourself outside of the ETFs as well.
What Makes The ETF A Success?
Mainly it comes down to ease of use. There were a lot of gray areas before that ended up keeping many investors away. The confusing messages from the SEC have pretty much gone away with the approval of ETFs and has given everyone the green light that it's ok to own this asset.
Also it makes it much easier to buy bitcoin and have skin in the game. There's still a lot of complexity and risk to owning bitcoin outright. You'll need a wallet, you have to manage that wallet, lose your password you lose everything type deal etc. People simply don't want to mess with all of that at scale and just want to buy the asset. This is what ETFs are allowing people to do.
*This article is for entertainment purposes only and is not financial advice. Do your own research before investing.
Posted Using InLeo Alpha
Buckle up!
I love how this article was timed about 5 hours before the mega rally kicked in lol 22% of ETH
Looks like Bitcoin is on its way up right now!
It's moving good again.
I think ease of use is the biggest selling point for ETFs. Most people have become wired to delegate or outsource responsibility but I do hope the younger generations take the direct route into crypto.
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