Latest news with #CoinbaseCustody
Yahoo
14-07-2025
- Business
- Yahoo
Bitcoin ETF (GBTC) Hits New 52-Week High
For investors seeking momentum, Grayscale Bitcoin Trust ETF GBTC is probably on the radar. The fund just hit a 52-week high and soared 135.2% from its 52-week low of $39.56 per more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed: Grayscale Bitcoin Trust is the first Bitcoin ETF that enables investors to gain exposure to Bitcoin in the form of a security, while avoiding the challenges of buying, storing and safekeeping it directly. It owns and passively holds actual Bitcoins through its Custodian, Coinbase Custody. Grayscale Bitcoin Trust is a cheaper version of Bitcoin, charging 1.50% in annual fees from investors (see: all the Cryptocurrency ETFs here). Bitcoin has been an area to watch lately, given the meteoric rise in the world's largest cryptocurrency. Bitcoin has soared to a new all-time high, surpassing $120,000 for the first time in its history. The explosive rally was driven by renewed institutional demand, robust spot Bitcoin ETF inflows and growing optimism surrounding global crypto adoption. The rally also reflects broader investor appetite for alternative assets amid a shifting macroeconomic landscape. GBTC might remain strong, given its weighted alpha of 87.60 and lower 20-day volatility of 33.6%. There is still some promise for investors who want to ride on this surging ETF. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research
Crypto Insight
14-06-2025
- Business
- Crypto Insight
BlackRock quietly accumulated 3% of all Bitcoin. Here's what that means
BlackRock's entry into the Bitcoin market through the iShares Bitcoin Trust (IBIT) has marked a new era in institutional Bitcoin accumulation. Since its launch on Jan. 11, 2024, IBIT has grown at a pace that few expected, and no other ETF has matched. As of June 10, 2025, BlackRock holds over 662,500 BTC, accounting for more than 3% of Bitcoin's total supply. At today's prices, that's $72.4 billion in Bitcoin exposure, a staggering figure by any measure. For comparison, it took SPDR Gold Shares (GLD) over 1,600 trading days to reach $70 billion in assets under management. IBIT did it in just 341 days, making it the fastest-growing ETF in history. In addition to being a milestone for BlackRock itself, this fact also shows us how deeply institutional interest in Bitcoin has matured. BlackRock's Bitcoin holdings now eclipse those of many centralized exchanges and even major corporate holders like Strategy. In terms of raw Bitcoin ownership, only Satoshi Nakamoto's estimated 1.1 million BTC outnumbers IBIT, and that lead is narrowing. If inflows continue at the current pace, IBIT may eventually become the single largest holder of Bitcoin, a major change for Bitcoin supply distribution and ownership concentration. BlackRock Bitcoin accumulation over time Did you know? Coinbase Custody, not BlackRock, holds the private keys for the BTC in IBIT, safely storing client assets offline and backed by commercial insurance. Behind BlackRock's massive allocation is a strategic shift in how it views Bitcoin: as a legitimate component of long-term, diversified portfolios. The BlackRock Bitcoin strategy BlackRock's internal thesis embraces Bitcoin's volatility as a tradeoff for its potential upside. With IBIT, they're betting that broader adoption will stabilize the asset over time, improving price discovery, increasing liquidity and narrowing spreads. In this view, Bitcoin is a long-term play on monetary evolution and digital asset infrastructure. This philosophy (coming from the world's largest asset manager) sends a strong signal to peers. It reframes the conversation around institutional adoption of Bitcoin, shifting it from 'whether' to 'how much' exposure is appropriate. The investment case for institutional Bitcoin accumulation BlackRock highlights several factors that make Bitcoin appealing in 2025: Scarce by design: With a hard cap of 21 million coins and a halving-based issuance model, Bitcoin scarcity mirrors gold, but with a digital backbone. Some estimates suggest a meaningful share of existing coins are lost or inaccessible, making the effective supply even tighter. With a hard cap of 21 million coins and a halving-based issuance model, Bitcoin scarcity mirrors gold, but with a digital backbone. Some estimates suggest a meaningful share of existing coins are lost or inaccessible, making the effective supply even tighter. Alternative to dollar-dominance: With growing sovereign debt and geopolitical fragmentation in mind, Bitcoin's decentralized nature offers a hedge against fiat risk. It's positioned as a neutral reserve asset, resistant to government overreach and monetary manipulation. With growing sovereign debt and geopolitical fragmentation in mind, Bitcoin's decentralized nature offers a hedge against fiat risk. It's positioned as a neutral reserve asset, resistant to government overreach and monetary manipulation. Part of the broader digital transformation: BlackRock views Bitcoin as a macro proxy for the shift from 'offline' to 'online' value systems, from finance to commerce to generational wealth transfer. In their words, this trend is 'supercharged' by demographic tailwinds, especially as younger investors gain influence. Put together, these factors provide distinct risk-return characteristics that traditional asset classes can't replicate. BlackRock's framing (that Bitcoin offers 'additive sources of diversification') makes a compelling case for its integration into mainstream portfolios. BlackRock crypto portfolio integration BlackRock advocates a measured approach, 1% to 2% exposure within a traditional 60/40 stock-bond mix. This may sound small, but in a portfolio of institutional scale, it's enough to generate impact and normalize Bitcoin exposure for conservative allocators. They also benchmark Bitcoin's risk profile against high-volatility equities, like the 'Magnificent Seven' tech stocks, to demonstrate how it can fit within standard portfolio models. Did you know? Unexpected by-products ('dust') from Bitcoin transactions within IBIT have included tiny amounts of other tokens. BlackRock keeps these in a separate wallet or donates them to charity, avoiding tax complications. BlackRock's decision to accumulate over 3% of Bitcoin's total supply through its iShares Bitcoin Trust (IBIT) is a turning point for how Bitcoin is perceived, traded and regulated. Bitcoin has always been known for its volatility, driven by fixed supply, shifting sentiment and regulatory uncertainty. Historically, the relatively thin liquidity of crypto markets made large trades highly impactful. Now, with IBIT absorbing hundreds of thousands of BTC, the question is whether institutional capital will stabilize or further complicate the market. Supporters of the ETF model argue that institutional Bitcoin investment helps reduce volatility. With regulated players like BlackRock involved, the thinking goes, Bitcoin becomes more liquid, more transparent and more resistant to erratic moves. BlackRock itself has stated that broader participation improves Bitcoin price discovery, deepens market liquidity and can lead to a more stable trading environment over time. On the other hand, critics (including certain academics) warn that large-scale institutional involvement introduces traditional market risks into Bitcoin. These include leveraged trading, flash crashes triggered by algorithms and price manipulation via ETF flows. In this view, Bitcoin's financialization may trade one kind of volatility (retail-driven FOMO) for another (systemic, leverage-based risk). Also, as ETFs grow in influence, Bitcoin may become more correlated with other financial assets, undermining its value as an uncorrelated hedge. Undoubtedly, BlackRock's crypto strategy has turned Bitcoin from a fringe asset into a mainstream investment tool. For years, Bitcoin was dismissed by major financial institutions. BlackRock's deep exposure to BTC signals that the tide has turned. The launch of IBIT (and its rapid ascent to become one of the largest Bitcoin holders globally) has legitimized Bitcoin in a way no white paper or conference ever could. ETFs like IBIT offer a familiar, regulated structure for exposure, especially for institutions wary of the technical complexity or custodial risks of direct crypto ownership. BlackRock's involvement reduces reputational risk for others on the fence. In effect, this has normalized Bitcoin ownership by institutions, accelerating its inclusion in traditional portfolios. Retail investors benefit too. Instead of navigating wallets, seed phrases and gas fees, they can gain exposure to Bitcoin with a click through traditional brokerages. Did you know? Abu Dhabi's Mubadala sovereign wealth fund owns a significant stake in IBIT, with filings showing around $409 million invested. Bitcoin was built as a decentralized alternative to centralized finance. However, when the world's largest asset manager buys up over 600,000 BTC via a centralized vehicle, it creates a paradox: The decentralized asset is increasingly controlled by centralized institutions. Most users today rely on centralized exchanges (CEXs), custodians or ETFs. These platforms are easier to use, offer security features like insurance and cold storage and provide regulatory compliance (KYC, AML), which many see as essential. In contrast, decentralized tools like DEXs and self-custody wallets have higher friction, lower liquidity and less user protection. So even as Bitcoin remains technically decentralized, most people interact with it through centralized layers. Here, BlackRock's Bitcoin accumulation is emblematic. While some argue this undermines Satoshi's original vision, others view it as a necessary trade-off, a 'centralization of access' that allows Bitcoin to scale to global relevance. This is the heart of the Bitcoin centralization debate: balancing ideological purity with practical adoption. For now, the market seems to be accepting a hybrid model, with decentralized base layers and centralized access points. BlackRock's ability to launch IBIT was made possible by a landmark decision: the US Securities and Exchange Commission's approval of spot Bitcoin ETFs in early 2024. That ruling broke a years-long deadlock and opened the floodgates for institutional capital. Still, the broader regulatory environment remains inconsistent and often contradictory. One of the biggest challenges when it comes to crypto? Asset classification. The SEC continues to send mixed signals on whether various tokens, like Ether or Solana, are securities. This regulatory gray zone has delayed the development of products like staking ETFs or altcoin ETPs, and created confusion for investors, developers and issuers alike. As Commissioner Caroline Crenshaw has pointed out, the SEC's current stance creates 'muddy waters' and reactive enforcement that stifles innovation. This directly impacts whether institutions feel confident investing beyond Bitcoin. For now, Bitcoin enjoys a more straightforward regulatory path. For the broader crypto market to mature, including Ether ETFs or DeFi-linked products, a more consistent and globally aligned regulatory framework will be essential. Institutions are ready – but they need rules they can trust. Source:
Hans India
20-05-2025
- Business
- Hans India
Role of Bitcoin ETFs in Building Infrastructure for Institutional Investors
In finance, real change often happens quietly. It begins behind boardroom doors, in regulatory updates and through infrastructure developments that go unnoticed until they reshape entire markets. Right now, Bitcoin Exchange-Traded Funds (ETFs) are doing just that. These products are not just offering investors a new way to gain exposure to Bitcoin. They are building the foundations for a new era of institutional investing. Until recently, Bitcoin remained largely out of reach for traditional financial institutions. Despite growing curiosity, practical hurdles such as security risks, regulatory ambiguity and operational complexity held them back. Bitcoin ETFs are now beginning to dismantle those barriers. The launch of the first U.S. spot Bitcoin ETFs in January 2024 marked a pivotal moment. Products like BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) quickly attracted billions of dollars in inflows. Within a few months, Bitcoin ETF holdings accounted for over 5% of Bitcoin's total circulating supply. This response made one thing clear: institutions were ready. They simply needed the right investment structure. Canada offered a preview of this trend back in 2021 with the launch of the Purpose Bitcoin ETF, the first of its kind in North America. It attracted over 400 million Canadian dollars within the first few days of trading, proving that demand for Bitcoin ETFs was not limited to the U.S. The rapid success of both U.S. and Canadian offerings underlined a common theme. Institutions around the world were looking for secure and regulated ways to participate in Bitcoin's growth story. Bitcoin ETFs allow institutions to access this asset class using familiar processes. They fit neatly within existing compliance frameworks, eliminating the need to manage private keys or create new custody solutions from scratch. Risk committees, auditors and regulators can evaluate these ETFs as they would any other listed security, making approvals and oversight far more straightforward. Custody has long been one of the biggest institutional concerns. Holding Bitcoin safely is both technically complex and expensive. Bitcoin ETFs solve this by relying on established custodians such as Coinbase Custody and Fidelity Digital Assets. This professional infrastructure gives institutional investors confidence that their assets are being managed securely and transparently. Another major benefit is liquidity. Unlike direct Bitcoin transactions, which often involve price slippage and fragmented markets, Bitcoin ETFs are traded on stock exchanges with consistent volumes and pricing. For instance, BlackRock's ETF regularly sees daily trading volumes that rival mid-cap S&P 500 stocks. This level of liquidity enhances flexibility and helps investors manage positions with ease. Beyond accessibility and security, Bitcoin ETFs are driving broader changes across the digital asset landscape. Institutional demand brings higher expectations around pricing efficiency, transparency and market integrity. This, in turn, is prompting crypto exchanges and service providers to adopt more robust practices in areas such as surveillance, reporting and risk management. Public perception is also shifting. A decade ago, Bitcoin was viewed primarily as a speculative experiment. Today, names like BlackRock, Fidelity and Franklin Templeton are among the leading players in the Bitcoin ETF space. Their participation signals a profound change. Digital assets are moving from the fringes to the core of modern finance. It is important to acknowledge that Bitcoin remains a volatile asset. Institutions must manage this risk thoughtfully. However, Bitcoin ETFs offer a regulated and credible entry point that aligns with how institutions already operate. They provide a way to gain exposure to digital assets without compromising on compliance, governance, or operational control. The future of investing is already taking shape. Bitcoin ETFs are not just another product on the shelf. They are transforming how the financial world engages with digital assets. The groundwork being laid today will influence how institutions allocate capital, manage portfolios and expand their horizons for years to come. (This article is authored by Srinivas L, CEO, 9Point Capital)
