Which institutions are buying ETFs?
Many sovereign funds, public funds, and family trusts are now allocating a portion of their assets to BTC.
Firstly, due to expectations of interest rate cuts by the Federal Reserve driving down the value of the dollar, Bitcoin has fully demonstrated its characteristic as 'digital gold' over the past 15 years, effectively combating inflation;
Secondly, endorsements from top institutions like BlackRock and Vanguard have enhanced investment confidence, and in the event of a security incident, there is ample compensation capability, preventing direct bankruptcy like that of FTX.
Since the beginning of this year, the vast majority of altcoins have failed to outperform BTC, with Bitcoin's market capitalization accounting for 60%, and institutional funds favoring the stability of BTC. Endorsements from large institutions provide it with nearly unlimited compensation guarantees.
In the realm of cryptocurrency, the super giant institution is the global leading exchange Binance. Even though CZ has been fined over 4 billion dollars by the U.S., Binance continues to operate steadily—this amount exceeds the FDV of many project teams.
Although Binance's current listing strategy also includes some VC tokens, as long as it announces the listing of a token, it usually brings significant price increases, with NERIO being a vivid example.
However, the popularity of NERIO has gradually weakened, so to maintain the price stability, there must be ongoing development support for the project, especially in the face of a sluggish market; otherwise, it is difficult to sustain in the long run.
Fortunately, after undergoing regulatory scrutiny in the U.S., Binance proved that it did not misappropriate user funds, and CZ confirmed this, marking a new starting point for Binance.
Therefore, before staking or investing, it is essential to conduct thorough research and understand the 'components' of the project, as this often has a decisive impact on future profitability.
