How Institutional Adoption Affects Bitcoin

The consolidation of cryptocurrency as an asset class may be getting stronger. There are signs that the first US Bitcoin exchange traded funds (ETF) may now be launched following the US Court of Appeals decision in favour of Grayscale. The court found that the SEC had acted "unlawfully" by approving the listing of two bitcoin futures exchange-traded products (ETPs) while denying Grayscale's proposal for a bitcoin ETF. This could impact other companies seeking to create bitcoin ETFs, including BlackRock and Fidelity. This is against the background that firms have been applying for spot bitcoin ETFs, but SEC has denied more than 30 proposals since 2021 — a 100% rejection rate. Bitcoin and other major cryptocurrencies saw significant price increases following the ruling, and Coinbase, which is listed as the custodian partner in multiple spot bitcoin ETF applications, saw its stock rise more than 14%. The ruling in favor of Grayscale has several potential impacts on the cryptocurrency sector: 1. 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐥𝐚𝐫𝐢𝐭𝐲: The ruling may push SEC to provide clearer guidelines for the cryptocurrency market. This could lead to greater confidence among investors and businesses operating in the crypto space. 2. 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐟𝐨𝐫 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐄𝐓𝐅𝐬: The immediate impact is the potential approval of bitcoin ETFs in the United States. A bitcoin ETF would make it easier for traditional investors to gain exposure to bitcoin, potentially leading to increased demand and adoption. 3. 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐈𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭: Some institutional investors have been waiting for a regulated and familiar investment vehicle like an ETF to enter the market. The approval of bitcoin ETFs could attract more institutional investors to the cryptocurrency market. 4. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐆𝐫𝐨𝐰𝐭𝐡: The potential approval of bitcoin ETFs could lead to increased liquidity in the cryptocurrency market. More trading and investment opportunities could attract new participants and drive market growth. 5. 𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐎𝐭𝐡𝐞𝐫 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐢𝐞𝐬: While the ruling specifically addresses bitcoin ETFs, it could set a precedent for other cryptocurrencies. If a bitcoin ETF is approved, it may pave the way for ETFs tied to other cryptocurrencies. 6. 𝐎𝐯𝐞𝐫𝐬𝐢𝐠𝐡𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐒𝐩𝐨𝐭 𝐌𝐚𝐫𝐤𝐞𝐭: SEC's involvement in regulating a bitcoin ETF could provide some oversight of the bitcoin spot market, even though bitcoin is not considered a security. This could have implications for market integrity. 7. 𝐆𝐥𝐨𝐛𝐚𝐥 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: The approval of a bitcoin ETF in the US could influence regulators in other countries to consider similar products, potentially leading to a global trend of cryptocurrency ETFs. Clearly, this marks a major evolution in the crypto industry, offering opportunities for participants and boosting ecosystem growth. #fintech #cryto #investments

There's a race to accumulate Bitcoin across corporations, nations and other entities around the world. South East Asia needs to join the fray. Our firm BlockSpaceForce has released a comprehensive analysis on Bitcoin treasury adoption opportunities in SEA. Think of it as an open-sourced playbook that anyone can review and use to speak to your stakeholders. 📊 Global Accumulation Data: 80+ public companies globally now hold Bitcoin as treasury assets Total institutional holdings: ~$668B across ETFs, public companies, and sovereign funds Nations accumulating: USA (207,189 BTC), China (194,000 BTC), UK (61,000 BTC) Market cap premiums: Companies trade 1.5-8x above net asset value of Bitcoin holdings 🏢 Corporate Success Stories: MicroStrategy (MSTR): Grew from struggling software company to $75B market cap Metaplanet (Japan): 15x stock increase, became most traded stock on Tokyo exchange Meliuz (Brazil): First LATAM public company adoption, 53% stock surge 🌏 SEA Market Opportunity: No retail Bitcoin ETF available in region yet Southeast Asia accounts for significant % of global crypto transaction volume Singapore: 40%+ of Gen Z/Millennials hold crypto assets 📈 Implementation Framework: The analysis outlines qualification criteria including cash reserves, stable cash flow, and executive support. Implementation involves phased allocation over 6-24 months, institutional custody solutions, and comprehensive risk management frameworks. Performance Targets: Bitcoin holdings: 1000+ BTC over 3-year period Projected share performance: 50-300% upside potential Goal: Top 20-50 global Bitcoin holding company ranking Accumulate and win. 🏆

There currently seems to be an insatiable demand for #bitcoin ETFs. Inflows have accelerated in the last week! 📈 A rising tide lifts all boats 🚢 , and bitcoin will benefit from increased access from these ETFs. They are great vehicles for people who only care about bitcoin's inherent Number Go Up (NGU) technology and are perfectly fine with the prospect of ending up with more dollars at the end of the trade. I believe it will also be a good vehicle for short-term traders, given the relatively low fees and tight spreads offered by the most liquid ETFs. However, there are many other people and organizations with interest in bitcoin beyond NGU. There are severe limitations when you gain exposure to bitcoin via an ETF: 👎 it's relegated to US markets and those who have access to them 👎 it only trades about 25% of any given week. What if you want to buy or sell on a Saturday? 👎 it's guaranteed to have fees, which is not necessarily the case with spot bitcoin 👎 and most importantly, it can't be used as MONEY After all, MONEY is bitcoin's primary use case. By holding spot bitcoin instead of the ETF, you can: 👍 access it 24/7/365 ⏱ 👍 from anywhere in the world 🌍 👍 in a permissionless manner 🔑 👍 trade it in the economy where it's accepted (this is growing!) 🛍 👍 and STILL get all of the benefits of NGU technology 📈 Certain economic actors, like large corporations and governments, will almost certainly buy spot bitcoin instead of bitcoin ETFs. When Apple adds bitcoin to its balance sheet and incorporates it into Apple Pay, it will use spot bitcoin. When the Argentinian government makes bitcoin legal tender and buys bitcoin for its reserves, it will do so in the spot market. What would be the point in buying something that is still exposed to the global dollar financial system? More choice in exposure to bitcoin is a good thing - everything is good for bitcoin! The ETFs will certainly drive further adoption. The question for you is this: As you consider your first bitcoin allocation, in your personal name or for your business treasury, what is your thesis? The more adoption bitcoin gets, the more enticing it is to use it as money beyond NGU, and therefore, the more it makes sense to buy real bitcoin instead of just paper exposure.

I just talked to someone who spent 11 years managing volatility for billion-dollar insurance portfolios. He understands risk better than anyone... Here are the 7 most important moments from our chat together on Bitcoin treasury companies and the future of Bitcoin: 1. Zombie Companies Are Being Saved by Bitcoin Companies with stagnating revenue are finding their second act with Bitcoin treasury adoption. For example, Semler Scientific was a struggling healthcare stock that exploded after their Bitcoin announcement. It's become the biggest marketing tool in the market, literally saving companies from going under. 2. Traditional Risk Frameworks Won’t Cut It Most analysts evaluate Bitcoin treasury companies with obsolete frameworks. After 11 years managing catastrophe risk, Jeff realized these entities don't have the risks everyone thinks they do. They have no: • Physical risk • Product liability • Operational hazards Yet Wall Street continues to use an old playbook, and it's creating massive opportunities. 3. Secured Debt is A Red Flag Traditional financial markets being vastly larger than Bitcoin creates a dangerous dynamic. When your Bitcoin is collateral, you're vulnerable to coordinated attacks. Any provider can rally their buddies to bury you because they can stay solvent longer than you can That’s why unsecured debt structures are much safer. 4. Saturation Isn’t Possible It makes sense to worry about the Bitcoin treasury market getting saturated. But you realize that adoption makes each company act like its own ETF with unique risk-return profile, you’ll see it’s unlikely. Capital will shift from traditional markets due to superior returns. Anyone will be able to build a Bitcoin efficient frontier in their portfolio. 5. MicroStrategy Is Too Far Ahead To Catch Up To Most people don’t grasp just how well-positioned Strategy is. They have: • 50x more Bitcoin than Mag 7 combined and 49x more than the entire S&P 500 • $64B Bitcoin vs $10B debt ($5B effectively due to convertibles) • Their fixed income products pay 10-11% vs PG&E's 6.25% Bitcoin would need to fall to $16k for 5 years to threaten the company. 6. Demanding Proof of Reserves Is Pointless Right now, everyone's demanding wallet addresses like it's some magic bullet. Yes, there are risks like dusting and compliance nightmares. But at the end of the day, it’s all binary. They either have Bitcoin or they don't. All that energy should be shifted to structuring balance sheets instead. 7. There Will Be 1000+ Bitcoin Treasury Companies By 2030 Jeff predicted that Bitcoin will reach a $6-7 trillion market cap by 2030. Over 1000 Bitcoin treasury companies will exist, some with a cost basis of $1M+ per Bitcoin. These companies will acquire distressed businesses that didn't adapt. It’ll be a transfer of wealth unlike anything we’ve ever seen. - If you want to check out the full episode btw... click here: https://lnkd.in/gu-URt9m