51% of institutional investors are considering allocation to spot cryptocurrenciesᯓ
As for the 42 listed companies holding Bitcoin in the U.S. stock market, the total value of their BTC holdings has increased to US$20 billion.
828 Bitcoin prices fell sharply, falling as low as $57,860.ᐟ
#Bitcoin 📶
"According to the latest report from Matrixport, this round of decline may be due to the long liquidation stimulated by the Federal Reserve's dovish remarks last week. Although the callback was not triggered by a significant event, in a low liquidity environment, the liquidation pressure of the bulls became a downward pressure on prices. The main driving factors.
🔶 Institutional investors’ attitude towards digital assets
The Economist Intelligence Unit report further pointed out that institutional investors’ interest in digital assets is gradually expanding, and it is expected that by 2027, digital assets will account for 7% of institutional investment portfolios.
As the digital asset market matures, the market size of tokenized assets is expected to exceed US$10 trillion in the 2030s. Currently, institutional investors usually allocate 1%-5% of their assets to digital assets. In addition to spot cryptocurrencies, 33% are focusing on digital asset pledges, 32% are exploring crypto derivatives, and 36% are interested in funds tracking cryptocurrencies. .
🔶Surge in Bitcoin holdings of listed companies
Data shows that 42 U.S. listed companies currently hold a total of 335,249 Bitcoins, with a total value of US$20 billion. A year ago, the total value of BTC held by these companies was only $7.2 billion, showing a growth rate of 177.7%. This growth reflects public companies’ recognition and confidence in Bitcoin as a long-term investment asset.
💡Personal opinion
Institutional investors’ optimism is reflected not only in holdings of cryptocurrencies, but also in the active adoption of financial instruments such as staking and derivatives. While markets are facing a pullback, any pullback is expected to be short-lived amid expectations of rate cuts from the Federal Reserve.
The Federal Reserve may cut interest rates by 25 to 50 basis points in September, and expects four rate cuts in 2024. But overall, despite the inevitable short-term fluctuations, institutions' long-term optimism about digital assets remains unchanged.
