Surprising Interest from Sovereign Wealth Fund in Bitcoin Following ETF Price Surge
BTC Stabilizes After Market Sell-Off
BTC has stabilized following a sudden “perfect storm” sell-off over the last week that wiped $300 billion from the combined bitcoin and crypto market. The BTC price remains near $60,000 per BTC, up around 50% from the beginning of the year, powered by a fleet of new Wall Street spot bitcoin exchange-traded funds (ETFs) that could soon be hit by a fresh earthquake.
Sovereign Wealth Funds Show Interest in BTC
An executive at spot BTC ETF issuer BlackRock has revealed that sovereign wealth funds, such as those run by Kuwait and Saudi Arabia, are showing interest in BTC and could begin trading in the coming months. This interest from sovereign wealth funds would represent a significant shift in investment attitude toward BTC and crypto.
BlackRock is meeting with wirehouses of big banks in the hope that they’d sign off on recommending bitcoin ETFs to clients in the coming months. Last month, the chief investment officer at BTC ETF issuer Bitwise predicted that this move could trigger an even bigger wave to hit the bitcoin price than the ETF approvals in January.
Spot Bitcoin ETFs Open Up New Investment Opportunities
The arrival of long-awaited spot BTC ETFs on Wall Street this year has already opened up BTC to a new cohort of investors who previously regarded it as an unproven store of value. The largest of the new funds, BlackRock’s IBIT, has amassed $17 billion in assets under management in the three months since its debut, recently notching a 71-day inflow streak.
Last week, Morgan Stanley could soon give the green light to its 15,000 brokers to recommend the spot BTC ETFs to clients, further expanding the reach of bitcoin investments.
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