Bitcoin
Bitcoin Jumps to $62,000 With Pension Funds Betting on ETFs
Bitcoin’s value surged to a high of $62,745 late Thursday, bolstered by a significant influx into exchange-traded funds (ETFs).
On Thursday alone, Bitcoin ETFs saw a record inflow of $194.6 million, the highest amount in the last two trading weeks. BlackRock’s iShares Bitcoin Trust (IBIT) led this surge, with an inflow of $157.6 million. Following closely, the WisdomTree Bitcoin Fund (BTCW) recorded $118.5 million.
Retirement Planning Company of New England Invests in Bitcoin ETF
Despite inflows into other ETFs, Grayscale’s Bitcoin Trust (GBTC) saw a substantial outflow of $182.9 million. This contrast highlights the volatile but ultimately bullish market sentiment surrounding Bitcoin.
The week began less positively, with ETFs collectively recording an outflow of $168.4 million on Monday. Another $148.6 million left the ETFs on Tuesday. Due to these early losses, the net flow from Monday through Thursday was still an outflow of $77.3 million.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach
| Date | IBIT | FBTC | BITB | ARKB | BTCO | EZBC | BRRR | HODL | BTCW | GBTC | BTC | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| August 5 | 0.0 | (58.0) | 2.9 | (69.0) | 0.0 | 0.0 | 0.0 | 3.0 | 0.0 | (69.1) | 21.8 | (168.4) |
| August 6 | 0.0 | (64.5) | 0.0 | (28.9) | 0.0 | (23.0) | 0.0 | 0.0 | 0.0 | (32.2) | 0.0 | (148.6) |
| August 7 | 52.5 | 0.0 | 3.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 10.5 | (30.6) | 9.7 | 45.1 |
| August 8 | 157.6 | 65.2 | 0.0 | 32.8 | – | 0.0 | 0.0 | 3.4 | 118.5 | (182.9) | 0.0 | 194.6 |
Institutional interest in Bitcoin is growing, especially among pension funds. Traditionally, these funds adhered to strict risk management protocols, showing caution in their investment strategies. However, this conservative approach appears to be shifting.
For example, the Retirement Planning Company of New England invested $249,429 in GBTC, acquiring 4,685 shares. This was revealed in its latest FORM 13F filing with the US Securities and Exchange Commission (SEC).
Similarly, in July, the State of Michigan Retirement System disclosed a $6.6 million investment using the ARK 21Shares ARKB spot Bitcoin ETF. Jersey City Mayor Steven Fulop announced the city’s plans to invest pension funds in spot Bitcoin ETFs in July. Mayor Fulop’s decision reflects a growing conviction in Bitcoin’s enduring presence and its foundational technology’s potential.
In May, the State of Wisconsin Investment Board (SWIB) also made headlines. They purchased $99 million worth of BlackRock’s Bitcoin ETFs, iShares Bitcoin Trust (IBIT). This decision aligns with a broader trend where traditional financial entities include cryptocurrency within their investment strategies.
Bitcoin’s price trajectory reflected its typical volatility. It recovered impressively from a low of nearly $49,000 on Monday to Thursday’s peak—an increase of almost 28%. However, the price has since corrected to around $60,909.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Often viewed as a drawback, enthusiasts interpret Bitcoin’s volatility as a sign of its dynamic potential. Michael Saylor, co-founder of MicroStrategy, likened it to energetic natural phenomena.
“Bitcoin is volatile, but volatility is a signal of high energy. Rivers, waterfalls, and fire are all volatile; yet they contain energy that we can harness. This digital asset is attracting massive amounts of capital, which is driving its superior performance,” Saylor said.
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