Institutional investors have entered the cryptocurrency space with force, with data suggesting that deep-pocketed investors gained interest in the space after the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, leading to whales accumulating over $16 billion in BTC since.
According to data shared by cryptocurrency analytics firm IntoTheBlock, the long-awaited arrival of institutional adoption in the crypto space appears to be underway as cryptocurrency whales — defined by wallet addresses with 1,000 or more BTC in them — have amassed nearly $16.8 billion worth of Bitcoin since spot Bitcoin ETFs were greenlit earlier this year.
In total, according to the firm, these whales added 250,000 BTC since the launch of the spot Bitcoin exchange-traded funds, with the aggregate amount Bitcoin whales are holding now being back “near the levels it was prior to the FTX collapse.”
However, IntoTheBlock points out a key shift in the composition of these whales. Traditional finance firms appear to be taking the place previously occupied by crypto-native asset managers.
As reported, Bitcoin selling pressure on the popular cryptocurrency exchange Coinbase has eased as the well-known Coinbase premium, which tracks the price difference of Bitcoin on Coinbase and other exchanges, has significantly narrowed.
The “Coinbase Premium Gap,” as on-chain analysis firm CryptoQuant shows, has narrowed after dipping into significantly negative territory this week, suggesting significant selling pressure on the exchange that is known to be used by institutional investors entering the cryptocurrency space.
The narrowing of the gap indicates that selling pressure has eased, likely as flows to spot Bitcoin exchange-traded funds (ETFs) started stabilizing and as the price of the flagship cryptocurrency started surging.
Recent filings with the U.S. Securities and Exchange Commission have been revealing hedge funds and Wall Street giants added exposure to Bitcoin via spot Bitcoin exchange-traded funds in the first quarter of the year, with Bracebridge Capital, a Boston-based hedge fund managing roughly $12 billion in assets, buying up $360 million over three funds.
The disclosure comes amid several others, with the U.S. state of Wisconsin recently becoming the first local government entity to reveal an investment in Bitcoin after purchasing 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT), worth nearly $100 million, in the first quarter of the year.
The move sees the state of Wisconsin join several Wall Street giants, including JPMorgan Chase and Wells Fargo, in revealing BTC exposure through investment in spot Bitcoin exchange-traded funds, according to 13F filings.
JPMorgan revealed an investment of $731,246 in BlackRock’s IBIT ETF, Bitwise’s BITB, Fidelity’s FBTC, and Grayscale’s GBTC, while Wells Fargo disclosed $141,817 in GBTC holdings. BNP Paribas and BNY Mellon have also made similar disclosures.
BNP Paribas, the second-largest bank in Europe whose asset management arm has over $600 billion in assets under management, has gained exposure to the flagship cryptocurrency Bitcoin in the first quarter of the year as well by purchasing shares of IBIT.
Featured image via Unsplash.
