-BTC ETF-related transactions are questiona
ble, but they are part of the "cash-back" function.According to analysis by Bitwise IT director Matt Hougan, large institutions picked up on the bitcoin[BTC] #Etf trend and invested £10.7 billion in the first quarter.
Hougan's data shows that over 11 billion AUM (assets under management) was invested in the US Etf Spot #MemeWatch2024 . 944
Even hedge funds (HFs) such as Steven Cohen's Point72Asset Management, Citadel Advisors, Millennium Management and Elliott Investment Management are actively using BTC ETFs.
Specifically, according to Bloomberg ETF analyst Eric Balchunas, Millennium Management leads the HF list with more than $44 billion invested in 20 ETFs.
However, Tyler Durden, one market observer, notes that most of those transactions were done offline.
#Blackrock can get as many bitcoins from Coinbase as it wants, and transactions will be recorded off-chain.
However, Coinroutes' Dave Weisberger noted that "off-chain trading" is part of the "cash-back" feature of the U. S. spot Etf BTC.
Of course, for the "cash creation/redemption" that the SEC is enforcing, they had to do it that way. AP can't "touch" spot #bitcoin , so it would have to engage in transactions offline.
Weisberger's views are mirrored by Bloomberg ETF analyst James Seifert.
For newcomers, the cash-back or cash-creation feature means that trades in spot BTC ETFs can only be settled in cash, regardless of whether U. S. Etf BTC shares were bought or sold.
However, Weisberger said, this does not mean that the issuer of each Etf does not have a 1:1 backup with the underlying spot BTC.
It doesn't mean anything for ETF shares. It means that the Etf will have full "spot bitcoin" custodian protection for all shares created in accordance with the Association's approved bylaws.
Analytics providers such as Arkham track most of the wallets of U. S. issuers of BTC exchange traded index funds.
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