The Evolution of Bitcoin, From Visionaries to Institutional ETFs

The Evolution of Bitcoin, From Visionaries to Institutional ETFs

Oct 08 Tech Standard

From investors like Tim Draper to early pioneers like Roger Ver and Adam Back, Bitcoin has always drawn outsiders and visionaries. What began as a trickle of interest over the past ten years has evolved into a flood, with hundreds of millions of people—from common people to executives—now investing in Bitcoin. Their methods vary, even though they all have access to the same asset—especially for Wall Street businesses, which have been using ETFs more and more this year.

The Long Road to Bitcoin ETFs, From Concept to Approval

The idea for a Bitcoin ETF first surfaced in 2013, but due to market concerns, the SEC rejected the first applications. Futures-based ETFs were allowed in late 2021, and the first spot ETF followed in early 2024, marking a significant milestone. The SEC's shift in position, which prompted a capital inflow after the first spot ETF opened, was highlighted by Bloomberg's Eric Balchinas on the October 7 edition of The VALR Podcast. On that day, institutional investing and Bitcoin entered a new era with the debut of ten ETFs, including the conversion of GBTC.

Bitcoin ETFs, Unlocking Institutional Capital and Mainstream Adoption

After the first spot Bitcoin ETF was approved, institutional capital poured in, and by year's end, US spot ETFs had amassed over 922,000 BTC and were getting close to one million. Daily inflows average $50 million, propelled by a 124% BTC surge this year. Additionally, institutions wanted to gain exposure to several cryptocurrencies, which is why ETH ETFs were introduced in July. ETFs make it easier for regular investors to acquire exposure to Bitcoin without the hassles of custody. The appeal of Bitcoin has increased due to global tensions and inflation, matching the recent highs of gold. ETFs have become the primary entry point for institutions as a result of Bitcoin's journey from "magical internet money" to a respectable asset for Wall Street.

HarshitKulhan

Crafting cinematic stories through the lens of my phone, I am a blogger and content writer who expresses the essence of my blogs through words

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