VanEck estimates the value of bitcoin holdings of ETFs, countries, and companies at $175 billion

The company notes that more and more institutions are beginning to consider the asset as a means of preserving value

02.05.2024 - 07:50

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3 min

What’s new? Analysts at the investment firm VanEck said that interest in bitcoin among institutional investors has increased, with hedge funds, asset management firms, and NPOs increasingly recognizing the first cryptocurrency’s potential as a means of preserving value. According to VanEck, exchange-traded funds (ETFs), countries, and public and private companies currently hold a total of $175 billion in bitcoin.

Material by The Block

What else is known? Analysts added that businesses and merchants are now much more likely to accept bitcoin as a form of payment, emphasizing the convenience of the asset’s infrastructure for use by the average user.

VanEck is one of the companies that received approval to launch a spot bitcoin ETF from the US regulator in January this year. Its product, under the ticker HODL, trades on the Chicago Board Options Exchange (CBOE) with a 0,25% management fee. The fund has seen inflows of more than $470 million since it began trading and manages more than $599 million in assets.

The company donates 5% of the fund’s management fee to Brink’s NPO, supporting the development of open-source projects on the Bitcoin network.

Media: Australia’s largest exchange will launch BTC ETF trading by the end of the year

Bitcoin funds first became available in the country through the CBOE Australia exchange in 2022

Earlier, Bloomberg analysts said that there were signs of stress in bitcoin funds, noting that their shares were trading at the largest discount to the underlying asset since the start of trading. BlackRock’s IBIT closed 1,7% below its underlying asset value on May 1, Fidelity’s FBTC had a discount of 1,1%, while ARKB from ARK Invest and Bitwise’s BITB had discounts of more than 1,4%.

Since April 30, the bitcoin exchange rate has collapsed by 11% to $57 740. On May 1, the daily volume of long position liquidations reached $350 million. And from April 22 to April 26, outflows from bitcoin-based investment products totaled $423 million.

Analysts at Standard Chartered admit that in the current conditions, the rate may collapse to $50 000.

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