Bitcoin

Bitcoin ETFs surge 27% – How U.S. hedge funds are helping BTC’s rise

Major institutions seek Bitcoin exposure as BTC ETFs experience a 27% ownership surge.

Published

4 weeks ago

August 21, 2024

Edited By: Saman Waris

60% of U.S. hedge funds bought Bitcoin as BTC/USDT broke out.
Bitcoin ETFs ownership surged as the Fear and Greed index matched sub-$30K levels.

Bitcoin [BTC] has been gaining significant traction from governments, major financial institutions, and large traders known as whales.

This growing acceptance is further supported by China’s potential move to lift its cryptocurrency ban. Globally, 60% of the largest US hedge funds have acquired Bitcoin exposure, as Quinten noted on X (formerly Twitter).

These firms included prominent firms like Citadel Investment Group, Millennium Management, Mariner Investment Group and Renaissance Technologies, all of which purchased Bitcoin ETFs in Q2 2024.

This trend highlighted the increasing institutional support for Bitcoin and the overall crypto markets.

Source: Quinten/X

Bitcoin price action analysis

Bitcoin (BTC/USDT) has recently broken out of a symmetrical wedge on the 4-hour chart and is now trading at $60,000.

The price rise following the downturn on the 5th of August is largely due to institutional involvement, which has helped support this level.

Source: TradingView

While some short-term pullbacks are expected, the $60K mark is a significant psychological level. Despite potential fluctuations, Bitcoin is likely to continue moving toward its all-time high.

Bitcoin ETFs surge as mining difficulty reduces

In Q2 2024, institutional ownership of Bitcoin ETFs surged by 27%. K33 Research reported that 262 new firms entered the U.S. spot Bitcoin ETF market, raising the total to 1,199 by the 30th of June.

This increase reflected growing institutional confidence in digital currencies. As a result, Bitcoin is expected to reach a new all-time high by late 2024 or early 2025.

Source: K33 Research

Recently, Bitcoin mining difficulty decreased in its latest bi-weekly adjustment. This change affects how quickly new blocks are created and regulates Bitcoin’s supply.

The reduction in difficulty suggests a drop in overall computing power, allowing miners to keep the block creation rate steady even with less processing power.