Latest news with #Vanda
CNA
2 days ago
- Business
- CNA
Analysis:Institutional investors warm to crypto but demand still nascent
NEW YORK :Bitcoin's surge to a record this week has reignited questions about the role institutional investors are playing in pushing it higher, with analysts suggesting their role is still in its infancy. The world's largest cryptocurrency earlier this week surged to a record above $123,000, receiving a boost on the expectation of pro-crypto policies from Washington. While buzz around digital assets has increased, there is room for demand from institutional investors to grow as pension funds and other long-term buyers add bitcoin to their portfolios, analysts say. "We're still in the early innings when it comes to institutional ownership," said Adrian Fritz, head of research at 21Shares, a digital assets investment firm, adding that retail investors still dominate crypto markets. Less than 5 per cent of all spot bitcoin Exchange Traded Fund assets are held by long-term investors such as pension funds and endowments, with another 10 per cent to 15 per cent owned by hedge funds or wealth management firms, Fritz calculates. The latter group of wealth managers, however, often buy these funds on behalf of high-net worth retail clients, and the bulk of ETF ownership remains retail, he said. There is a correlation between soaring retail purchases of crypto ETFs and crypto-related stocks and a run-up in prices, according to estimates from Vanda, a financial research firm. The data shows retail buyers bought heavily in late 2024 when prices surged after Donald Trump - who has vowed to be a "crypto president" won the U.S. election - as well as during the recent rally. Crypto buyers have been aided by a series of bills U.S. lawmakers are expected to pass this week, the most consequential of which - known as the Genius Act - will define the rules around stablecoins, a fast-growing area of the crypto market. The Republican-controlled U.S. House of Representatives cleared key procedural hurdles on crypto legislation on Wednesday, paving the way for the first U.S. federal law for digital assets. Some large U.S. lenders, including Bank of America and Citigroup, are also working on launching stablecoins. Another bill will provide regulatory clarity by formally establishing definitions of digital commodities and spelling out the roles of agencies in overseeing digital assets. This could make it easier for institutions that have long avoided the sector to invest. Simon Forster, global co-head of digital assets at trading platform operator and data provider TP ICAP, predicts the number of institutions active in crypto will grow by 2026, including pensions and other buy-and-hold firms. "By definition, they will be the slowest (to enter crypto)," Fritz said. BITCOIN TREASURY BUYING Analysts say data, although patchy given how opaque crypto markets remain, points to the growing role of bitcoin treasury companies in boosting demand. These are listed companies such as Strategy and GameStop, that initially focused on software and videogame retailing respectively but now emphasize owning and making money on bitcoin positions held on their balance sheets in place of cash, gold or ultra-short Treasury securities. Strategy's shares have soared in the past year, far outpacing the rise in bitcoin, with many investors seeing the stock as a way to get exposure to crypto while investing in mainstream financial markets. Juan Leon, research analyst at Bitwise Asset Management, said these companies' ability to buy bitcoin suggests they represent a bigger source of recent demand than pension, endowment and hedge funds that are major players in stock and bond markets. Strategy and GameStop did not respond to requests for comment. Since July last year, public companies worldwide collectively have increased their bitcoin holdings by 120 per cent and now hold just over 859,000, or 4 per cent, of the total 21 million bitcoin that will ever be in existence, said Simon Peters, crypto analyst at investment platform eToro. Companies are also selling common stock, preferred shares and convertible securities to raise funds to spend on boosting their bitcoin holdings, in a bid to replicate Strategy's outsized stock gains. The new wave of U.S. legislation could also pave the way for more listed companies to allocate a portion of their cash reserves to crypto tokens, said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Analysts warn, however, that a drop below $90,000 for bitcoin could put half of these corporate treasuries underwater. Demand for crypto ETFs has also been rising in recent months. Global net inflows into crypto exchange-traded products hit $4 billion last week, the highest so far this year, according to data from crypto firm Bitwise. Among the big institutional investors to have made public their investments in crypto ETFs in the past 18 months are the State of Wisconsin Investment Board, Abu Dhabi's Mubadala sovereign wealth fund and hedge fund Millennium Management, regulatory filings show. So far this year, bitcoin has gained around 25 per cent, compared with the S&P 500 index's 6.5 per cent gain. Ether, another cryptocurrency has climbed 2 per cent, while XRP is up nearly 40 per cent. The crypto sector's market capitalization now stands at $3.8 trillion, up nearly 66 per cent since before the U.S. election in November, according to CoinMarketCap.
Reuters
2 days ago
- Business
- Reuters
Institutional investors warm to crypto but demand still nascent
NEW YORK, July 17 (Reuters) - Bitcoin's surge to a record this week has reignited questions about the role institutional investors are playing in pushing it higher, with analysts suggesting their role is still in its infancy. The world's largest cryptocurrency earlier this week surged to a record above $123,000, receiving a boost on the expectation of pro-crypto policies from Washington. While buzz around digital assets has increased, there is room for demand from institutional investors to grow as pension funds and other long-term buyers add bitcoin to their portfolios, analysts say. "We're still in the early innings when it comes to institutional ownership," said Adrian Fritz, head of research at 21Shares, a digital assets investment firm, adding that retail investors still dominate crypto markets. Less than 5% of all spot bitcoin Exchange Traded Fund assets are held by long-term investors such as pension funds and endowments, with another 10% to 15% owned by hedge funds or wealth management firms, Fritz calculates. The latter group of wealth managers, however, often buy these funds on behalf of high-net worth retail clients, and the bulk of ETF ownership remains retail, he said. There is a correlation between soaring retail purchases of crypto ETFs and crypto-related stocks and a run-up in prices, according to estimates from Vanda, a financial research firm. The data shows retail buyers bought heavily in late 2024 when prices surged after Donald Trump - who has vowed to be a "crypto president" won the U.S. election - as well as during the recent rally. Crypto buyers have been aided by a series of bills U.S. lawmakers are expected to pass this week, the most consequential of which - known as the Genius Act - will define the rules around stablecoins, a fast-growing area of the crypto market. The Republican-controlled U.S. House of Representatives cleared key procedural hurdles on crypto legislation on Wednesday, paving the way for the first U.S. federal law for digital assets. Some large U.S. lenders, including Bank of America (BAC.N), opens new tab and Citigroup (C.N), opens new tab, are also working on launching stablecoins. Another bill will provide regulatory clarity by formally establishing definitions of digital commodities and spelling out the roles of agencies in overseeing digital assets. This could make it easier for institutions that have long avoided the sector to invest. Simon Forster, global co-head of digital assets at trading platform operator and data provider TP ICAP, predicts the number of institutions active in crypto will grow by 2026, including pensions and other buy-and-hold firms. "By definition, they will be the slowest (to enter crypto)," Fritz said. Analysts say data, although patchy given how opaque crypto markets remain, points to the growing role of bitcoin treasury companies in boosting demand. These are listed companies such as Strategy (MSTR.O), opens new tab and GameStop (GME.N), opens new tab, that initially focused on software and videogame retailing respectively but now emphasize owning and making money on bitcoin positions held on their balance sheets in place of cash, gold or ultra-short Treasury securities. Strategy's shares have soared in the past year, far outpacing the rise in bitcoin, with many investors seeing the stock as a way to get exposure to crypto while investing in mainstream financial markets. Juan Leon, research analyst at Bitwise Asset Management, said these companies' ability to buy bitcoin suggests they represent a bigger source of recent demand than pension, endowment and hedge funds that are major players in stock and bond markets. Strategy and GameStop did not respond to requests for comment. Since July last year, public companies worldwide collectively have increased their bitcoin holdings by 120% and now hold just over 859,000, or 4%, of the total 21 million bitcoin that will ever be in existence, said Simon Peters, crypto analyst at investment platform eToro. Companies are also selling common stock, preferred shares and convertible securities to raise funds to spend on boosting their bitcoin holdings, in a bid to replicate Strategy's outsized stock gains. The new wave of U.S. legislation could also pave the way for more listed companies to allocate a portion of their cash reserves to crypto tokens, said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Analysts warn, however, that a drop below $90,000 for bitcoin could put half of these corporate treasuries underwater. Demand for crypto ETFs has also been rising in recent months. Global net inflows into crypto exchange-traded products hit $4 billion last week, the highest so far this year, according to data from crypto firm Bitwise. Among the big institutional investors to have made public their investments in crypto ETFs in the past 18 months are the State of Wisconsin Investment Board, Abu Dhabi's Mubadala sovereign wealth fund and hedge fund Millennium Management, regulatory filings show. So far this year, bitcoin has gained around 25%, compared with the S&P 500 index's (.SPX), opens new tab 6.5% gain. Ether , another cryptocurrency has climbed 2%, while XRP is up nearly 40%. The crypto sector's market capitalization now stands at $3.8 trillion, up nearly 66% since before the U.S. election in November, according to CoinMarketCap.
Business Insider
10-07-2025
- Business
- Business Insider
Retail investors will lead a $500 billion buying spree that could send stocks soaring through year-end, JPMorgan says
A rush of investor cash is headed for the stock market in the second half, most of it coming from retail investors. That's according to JPMorgan, which predicted this week that investors are poised to inject $500 billion into stocks through the rest of 2025, and most of that will come from retail traders. "Led by retail investors, we envisage an equity buying flow of close to $500bn for the remainder of the year which would be enough to propagate equities by another 5%-10% into year end," analysts wrote in a note on Wednesday. JPMorgan estimates that retail traders have purchased a net $270 billion worth of stocks so far this year, with investors buying assets at a particularly aggressive pace in the first four months of 2025. The bank said it expects another $360 billion worth of retail stock purchases in the second half, based on its December forecast for retail stock purchases to hit $630 billion this year. It said foreign investors could add a net $50-$100 billion to that amount despite concerns that overseas buyers are reducing exposure to US markets amid the turmoil around tariffs and the widening US budget deficit. "We believe that this 'boycotting' of US equities by foreign investors is not sustainable as investors cannot avoid the biggest and most important growth segment of global equity markets," they added, pointing to the rally in the S&P 500 and the strength of the Magnificent Seven tech stocks. Foreign investors may want to see the US dollar stabilize before picking up their interest in US stocks, strategists added. But that stabilization could already be in motion, the bank said, pointing to the US Dollar Index, which has held steady at around 98 in recent weeks. Retail investors have already shown unprecedented enthusiasm for stock buying in the first half of the year, according to Vanda Research, which tracks retail investor flows into stocks and ETFs. In the first six months of the year, cumulative retail net purchases of stocks and exchange-traded funds have been the highest in at least the last 10 years, including during the pandemic stock boom, according to Vanda vice president Marco Iachini. Tech stocks have captured most of the attention. Nvidia was the "most-favored" stock among retail traders in the first half, Ianchini said in a note, with the chipmaker seeing $19.3 billion in inflows over the first six months of the year. That was followed by Tesla, which saw $11.9 billion in inflows, and the SPDR S&P 500 ETF Trust, which took in $6.3 billion.
Yahoo
06-06-2025
- Automotive
- Yahoo
Retail traders scooped up Tesla as Trump-Musk spat hit stock
By Suzanne McGee and Saqib Iqbal Ahmed NEW YORK (Reuters) -Retail investors seem to have spotted an opportunity in the sudden feud between U.S. President Donald Trump and his former ally, Tesla CEO Elon Musk, scooping up shares of the electric car maker as they tumbled on the acrimonious standoff. Trump on Thursday threatened to cut off government contracts with Musk's companies, as the once-close ties between the world's richest and most powerful man unraveled publicly on their rival social media platforms in a feud over the president's sweeping tax-cut bill. Tesla's stock plunged 14.3% on Thursday, the 11th worst daily drop since the company went public in June 2010. As retail traders hunted for bargains, the stock rose 5.6% to $299 at mid-afternoon on Friday, though it was unclear how much of a role they played in the rally. Self-directed individual investors scooped up a net $201.3 million of Tesla stock on Thursday after buying and selling $2.6 billion, Vanda Research estimated, making Tesla the day's second most-actively purchased stock by such investors. "Tesla has been a favorite holding for this group for a while, so when they see a drop of 14% or more, they jump in and buy," said Marco Iachini, senior vice president of research at Vanda, noting retail investors' renewed appetite for risk-taking. Such investors also poured money into leveraged exchange-traded funds that offer a chance to place a bullish bet on Tesla shares for amplified returns. The Direxion Daily 2x Bull ETF drew $41.5 million of net buying on Thursday, according to Vanda data. The options market, where Tesla is a favorite with retail traders, showed few signs of panic. "We're not seeing a huge move in volatility," Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, said of Thursday's trading, adding that some traders were taking advantage of the increased volatility to sell put options. Selling puts, which give the buyer the right to sell the underlying shares by a certain time at a set price, signals expectations for the stock price to slow or halt its slide. Tesla's 30-day implied volatility - an options-based measure of how much traders expect the stock to swing in the near term - rose to a six-week high of 77 on Thursday, well below the 106.1 touched in early April during a market-wide selloff, Trade Alert data showed. With Tesla shares up 5% at $299.14 on Friday morning, the implied volatility measure sank further to 68. "I don't think we're at the real warning sign levels at the moment," Interactive Brokers chief strategist Steve Sosnick, said. Iachini said he used models to scan comments about Tesla on social media sites like Reddit and X during Thursday's selloff, and found that users of the sites, which are popular with self-directed investors, overwhelmingly remain bullish on Tesla. "Buy the dip is the overwhelming sentiment," he said. Tesla shares, which surged as much as 90% in the six weeks following Trump's November 5 election, have slipped about 37% since they peaked on December 17. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
06-06-2025
- Automotive
- Yahoo
Retail traders scooped up Tesla as Trump-Musk spat hit stock
By Suzanne McGee and Saqib Iqbal Ahmed NEW YORK (Reuters) -Retail investors seem to have spotted an opportunity in the sudden feud between U.S. President Donald Trump and his former ally, Tesla CEO Elon Musk, scooping up shares of the electric car maker as they tumbled on the acrimonious standoff. Trump on Thursday threatened to cut off government contracts with Musk's companies, as the once-close ties between the world's richest and most powerful man unraveled publicly on their rival social media platforms in a feud over the president's sweeping tax-cut bill. Tesla's stock plunged 14.3% on Thursday, the 11th worst daily drop since the company went public in June 2010. As retail traders hunted for bargains, the stock rose 5.6% to $299 at mid-afternoon on Friday, though it was unclear how much of a role they played in the rally. Self-directed individual investors scooped up a net $201.3 million of Tesla stock on Thursday after buying and selling $2.6 billion, Vanda Research estimated, making Tesla the day's second most-actively purchased stock by such investors. "Tesla has been a favorite holding for this group for a while, so when they see a drop of 14% or more, they jump in and buy," said Marco Iachini, senior vice president of research at Vanda, noting retail investors' renewed appetite for risk-taking. Such investors also poured money into leveraged exchange-traded funds that offer a chance to place a bullish bet on Tesla shares for amplified returns. The Direxion Daily 2x Bull ETF drew $41.5 million of net buying on Thursday, according to Vanda data. The options market, where Tesla is a favorite with retail traders, showed few signs of panic. "We're not seeing a huge move in volatility," Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, said of Thursday's trading, adding that some traders were taking advantage of the increased volatility to sell put options. Selling puts, which give the buyer the right to sell the underlying shares by a certain time at a set price, signals expectations for the stock price to slow or halt its slide. Tesla's 30-day implied volatility - an options-based measure of how much traders expect the stock to swing in the near term - rose to a six-week high of 77 on Thursday, well below the 106.1 touched in early April during a market-wide selloff, Trade Alert data showed. With Tesla shares up 5% at $299.14 on Friday morning, the implied volatility measure sank further to 68. "I don't think we're at the real warning sign levels at the moment," Interactive Brokers chief strategist Steve Sosnick, said. Iachini said he used models to scan comments about Tesla on social media sites like Reddit and X during Thursday's selloff, and found that users of the sites, which are popular with self-directed investors, overwhelmingly remain bullish on Tesla. "Buy the dip is the overwhelming sentiment," he said. Tesla shares, which surged as much as 90% in the six weeks following Trump's November 5 election, have slipped about 37% since they peaked on December 17.
