Growing interest from institutions in spot Bitcoin ETFs

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What do you expect everyone want to take part and share as the early birds in the bitcoin ETF since is still very early, dont be surprised the money flows where the interests are and remember institutional investors are all in for the gain, so you shouldn't be surprised at the height that some institutions have gone on their bitcoin ETF positions.

There is something you need understand about these numbers. This ETF spots are not owned by Blackrock and fidelity but it's managed by them. The ETFs goes to the investors but most likely you know traditional investors like to be hidden because of their interests and values. These numbers of Bitcoin they are holding, there is possibility of Blackrock and Fidelity owning somw percentage of Bitcoin spot ETF. Let's say the total % for public is 4%, this number doesn't come close to the amount of Bitcoin the centralized exchanges are holding. The centralized exchanges alone hold roughly 15% of Bitcoin supply which are held on their custody just like ETFs bodies. The key thing here is, Blackrock and Fidelity manages other assets, combined investment worth $100b. This is an opportunity to tap liquidity from such places. People can sell their assets and want more Bitcoin, that's more like exposure of Bitcoin to traditional investors, more exposure more adoption of Bitcoin but the Bitcoin they hold doesn't comes close to what other centralized exchanges hold but the centralized exchanges doesn't manage other assets like the way Blackrock and Fidelity does, this is the big part they play in Bitcoin.

I was expecting you to head somewhere with this. You gave us information about blackrock and fidelity bitcoin holding, but that’s expired news, every time blackrock and fidelity buys bitcoin the news is widely broadcast. Institutions interest in bitcoin is increasing that also is an expired news. 1. Are you for or against the increase interest in bitcoin from institutions 2. Is this what bitcoin needs or it is bad for bitcoin and with reason 3 will it also increase bitcoin adoption We should to get more from you than just expired news.

You don't hold Bitcoin when you get an ETF. or at least in many of those etf. Taken from https://www.fool.com/investing/2024/03/17/bitcoin-vs-bitcoin-etfs-heres-what-im-buying/

I would like to see all these actors adopt Bitcoin a bit differently: not only as an asset that can protect their accumulated wealth, but also as a medium of exchange and a measure of value. And in the case of governments, as a tool for transparency and public oversight. The very first thing that fascinated me about Bitcoin was the idea that if governments collected taxes through the blockchain, everyone could track how those taxes were being spent. But governments remain silent about this crucial feature, pretending that Bitcoin is only about wealth preservation. And ETFs help divert attention away from these aspects of potential adoption.

More adoption YES, decentralization NO doesn't sound like a win for Bitcoin. The assets managed is still as unsafe as assets in CEXs. If their wallets gets compromised, their clients loses their Bitcoin as well. Bitcoin was designed to be decentralized, all institutions involvement gets Bitcoin more centralized than decentralized and it's a loss for Bitcoin irrespective of the fact that the price is going up. Not your keys, not your coins. The best way to hold Bitcoin is self custody and not third party management.

I think we're at a point where the crypto market has almost completely "reconfigured"... this institutional capital from companies is a significant fraction and has certainly helped reduce Bitcoin's volatility, as well as promoting a long-term vision. But I also don't think the technical use of Bitcoin, such as selfcustody, LN, etc., will die or lose momentum significantly. I recognize the importance of ETFs for Bitcoin, but I hope that Bitcoin's essence isn't lost and that we still have many people holding Bitcoin decentrally, autonomously, and without intermediaries... keeping these Bitcoins out of the reach of governments, banks, or asset managers like BlackRock. The more Bitcoin is concentrated in ETFs, the greater the risk of centralization.

The problem is much simpler than you think, unfortunately! What you don't understand is the following: You hold a share of an ETF (an IOU), that says that you "own" 3 BTC. Blackrock on the background buys and stores the Bitcoin using Coinbase. Now, Coinbase is responsible to keep the Bitcoin safe. Bitcoin has no central authority to control it. If a hacker hacks Coinbase, and steals Bitcoin that's supposed to be the pillar of the spot ETF, then nobody can help you and there is no way to find the coins back. Essentially what I am trying to say is: (1) You need to trust Coinbase and Blackrock too much, because Bitcoin isn't a traditional asset. If a wallet is hacked, they can't do anything about it. (2) You "fuck that shit" your own self-custody, but in reality you 're still trusting two entities to do this exact "self-custody" for you.

You are completely missing the point. The topic was never about centralization and decentralized platforms, it was never about custody of Bitcoin, it was about adoption of Bitcoin by the institutional investors. Centralization of one platform doesn't stop adoption, for years now "not your keys not your Bitcoin" phrase awareness has been around but many people don't care, they preferred custodial than holding it own their own and that's sad thing we can't reverse but we will keep teaching self custodial, the importance of decentralization and self independent on any exchange because we can't depend on adoption and completely ignored decentralization, Bitcoin will be at the wrong hands and it's going to be a loss war. What OP was saying the more institutional investors buy etf, more adoption Bitcoin will become which is not really the conventional adoption of Bitcoin. They are buying Bitcoin spot ETF under the management of Blackrock and Fidelity. These two institutions have billions of assets sitting around one corner to boost demand of Bitcoin. The more people buy Bitcoin spot ETF, the more Bitcoin Blackrock and Fidelity will be buying and holding and the more ETFs they sell, more Bitcoin will be sold off in the market. This technical adoption is a price impact of demand and supply and not real adoption like having real Bitcoin or personal wallet and do what you want, when you want and how you want. Are Institutional different from other centralized exchanges? Yes and No. Yes in the sense they hold Bitcoin in a custodial wallet like centralized exchanges, they share some similar interests. The No is where the other assets management comes in, they have the medium to make people buy more ETF, the more Blackrock and Fidelity  buy the more they buy real Bitcoin and hold into their custodial wallet.

Seems you're the one missing mine. I acknowledge the fact that institutions are buying more bitcoin which is leading to the price surge which I'm appreciative of based on my desire for profits in my own investment. My point is that these people aren't necessarily buying bitcoin, in case they are brainwashed to believe they own some bitcoin for themselves, they are buying shares from the bitcoins that these institutions own and trusting them it to be in their possession which is in contrast with bitcoin core values, I am stressing the point that these people are going about their investment into bitcoin wrongly, more like they are not being their own bank and if anything happens to BlackRock or Fidelity Cold storages, their so called assets are gone and for me this is a bigger risk since their assets are safe as long as BlackRock and Fidelity keeps it safe.

Yeah, that can’t be denied, it really looks like the trend so far. But what worries me is this..  what if in the future it’s the institutional investors who end up dictating the market? We’ll basically be depending on them, and they can move the market however they want. With their continuous accumulation, does that really help adoption? Because honestly, what they’re doing is just treating Bitcoin as an investment. It’s not like they’re using it for transactions or everyday use on platforms. That’s the scary part, if any of these giants suddenly decide to dump, it would definitely cause panic in the market.

I do agree that it's really a great that they are buying right now but a risk that is growing in the future. There wont be that much of a big easy decision that we can do this to get it better. I agree that it is not going to be that great for the long term. What we should seriously see this as a great profit for the long term, and can give us what we are dealing with. However, the difference is the fact that we can't stop them, meaning that they are going to end up with troublesome issues. What we are going to see this as part of the situation, that is a lot better. What we are focusing here is the fact that we are going to get insanely good value for it, ETF's will end up with getting a ton of money into crypto world.

The Investor said it as it is. It is all about trust.

Yeah that is true and it show that there is too much money in the wrong hands. Or the many states taking away too much from John Doe. What bolsters a economy is John Doe on a spending trip. Pensiones spending on siblings.

Talking about ignorance, you're the king. Bitcoin is designed to eliminate all government interference or trust given to any third party medium over your coins. Comparing bitcoin to real estate is a wrong yardstick of comparison because real estate is government-controlled while bitcoin is designed to be managed personally and not trusting a third party to help you with such. No matter how big or made these industries are, trusting them to manage your bitcoin is still very risky because no company is bigger than being compromised or collapsing, same reason we are advised to be our own bank and personally manage our bitcoin so as not to be a victim of the collapse of financial institutions.