By Institutional investors are piling into Bitcoin at unprecedented levels, with spot ETF inflows accounting for 78% of BTC’s recent price surge.
Key developments:
• BlackRock’s IBIT saw $420M inflow Wednesday
• Fidelity’s FBTC trading at 1.8x average volume
• Ark/21Shares ETF premium hit 2.3%
“These flows reflect a structural shift,” noted Galaxy’s Mike Novogratz. Behind the numbers:
✓ Pension funds allocating 0.5-1.5% to crypto
✓ Hedge funds covering 2024’s underperformance
✓ Corporates hedging against dollar volatility
The institutional infrastructure is expanding rapidly:
→ CME Bitcoin open interest at $8.7B (record high)
→ Goldman Sachs launches BTC-collateralized loans
→ DTCC adds crypto to its settlement system