Bitcoin Hits Major Q1 Milestone: 937 Financial Entities Disclose BTC Exposure

The largest cryptocurrency by market cap, Bitcoin, has hit a major milestone after the first quarter of the year. Data has shown that about 937 financial entities disclosed exposure to Bitcoin, majorly through US exchange-traded funds (ETFs).

Among the firms are pension funds, hedge funds, and investment banks. Bitcoin’s increased attraction supersedes that of its traditional competitor, gold, whose ETF product saw just 95 firms invest in it at the same timeframe.

Institutional Investor Influx Heightens

Since the US Securities and Exchange Commission (SEC) approved the spot Bitcoin ETF in January, the product has become a market sensation. US ETFs have raked in over $74 billion in assets under management (AUM), almost 60% of gold’s ETF, which has existed for 17 years.

Major financial institutions such as Bank of America and Wells Fargo are reportedly joining the ranks of Charles Schwab and Robinhood in offering Bitcoin ETFs to select wealth management clients. This move indicates a growing acceptance of Bitcoin within traditional financial circles and provides investors with additional avenues to access cryptocurrency investments.

One of the most notable Bitcoin ETF holders is Millenium Management. The investment firm announced on Wednesday that it holds $2 billion worth of Bitcoin ETFs, the highest recorded exposure so far.

The institutional investor influx to Bitcoin shows growing enthusiasm and capital allocation towards Bitcoin ETFs among large-scale entities. Termed “digital gold,” Bitcoin has outperformed major traditional assets in recent years.

Adoption Impacts on Bitcoin Price

ETFs have been one of the major Bitcoin price drivers, moving the asset over 15% on mere speculations of its approval last year. Before the slowdown in inflow, demand from the products pushed Bitcoin to an all-time high of $74,000 in March.

As inflows seem to have resumed and with Bitcoin flipping a major resistance at $65,000, the asset might be on course to reach a new high if the demands keep coming. Other macroeconomics, like an expected rate cut by the Federal Reserve System, would also drive the asset to six digits, as many analysts have predicted.