Bitcoin (BTC) witnessed a recent price downturn, unsettling retail investors, while prompting institutional giants to seize opportunities. Fiduciary Alliance, an investment advisor, emerged prominently in the crypto market during Q2 2024, as indicated by its July 10, 2024, 13-F filing with the U.S. SEC.
According to the filing, Fiduciary Alliance acquired a significant stake in BlackRock’s iShares Bitcoin ETF (IBIT), purchasing 188,668 units valued at about $6.64 million. This move underscores the firm’s confidence in BTC’s long-term potential despite short-term volatility.
Furthermore, Fiduciary Alliance purchased $3.48 million worth of units in the Grayscale Bitcoin Trust (GBTC). This move corresponds with the recent $25 million influx into GBTC, as reported in various institutional investors’ 13-F filings. City State Bank also disclosed its exposure to BTC through IBIT and GBTC ETFs.
Beyond Bitcoin, Fiduciary Alliance diversified its portfolio by acquiring shares in key crypto-related firms. This includes 8,332 shares of Coinbase (COIN) valued at $1.89 million, $1.70 million in MicroStrategy (MSTR) shares, and an investment of $744,426 in Tesla (TSLA).
Fiduciary Alliance’s diversified approach acknowledges the interconnectedness of the crypto ecosystem and the broader potential of blockchain technology. The strategic acquisitions underscore institutional investors’ increasing confidence in the cryptocurrency market, contrasting sharply with retail investors’ panic selling amid recent price declines.
Institutional Accumulation Signals Bitcoin Rebound
Factors such as Mt. Gox repayments and the German government’s Bitcoin selloff were cited for the price drop. However, on-chain analysis by CryptoQuant CEO Ki Young Ju indicates that long-term holders, particularly custodial wallets, have been steadily accumulating Bitcoin.
Ju reported that institutional wallets accumulated a significant 85,000 BTC within a month, while exchange and miner holdings decreased, indicating institutional players’ long-term bullish outlook.
Bitcoin recently reached a new low of $53,600, marking its lowest point since February.. Over the past week, it declined over 4%, with a 17% drop in the last month. However, the market has shown a slight recovery in the past 24 hours, with a 0.03% price increase. As of July 10, 2024, Bitcoin trades at $57,657 with a market cap of $1.14 trillion.
Despite the price downturn, derivatives traders remain bullish. Total futures open interest surged to $28.93 billion, a 1.51% increase in 24 hours. CME BTC futures open interest rose to $8.26 billion, up 1.97%. BTC options open interest also rebounded to $15.94 billion.
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