Bitcoin Price Surges as Morgan Stanley Reveals Significant Holdings in US Spot Bitcoin ETFs – Here’s the Latest
The price of Bitcoin (BTC) has experienced a significant increase this week following the release of US CPI data indicating moderating price pressures. Additionally, major financial institutions like Morgan Stanley have disclosed their substantial holdings in US spot Bitcoin ETFs.
At the moment, Bitcoin is trading just below $66,000, having reached new monthly highs above $66,750 earlier in the day.
In a Wednesday filing, Morgan Stanley revealed that it holds $270 million worth of spot Bitcoin ETFs. The investment banking and asset management giant had previously expressed its intention to gain exposure to BTC back in February. Furthermore, the bank is preparing to recommend spot Bitcoin ETFs to its clients.
Morgan Stanley’s disclosure of its BTC holdings coincides with numerous other institutional investors revealing their own holdings. Q1 13F filings show that over 500 asset managers now have exposure to spot Bitcoin ETFs. Currently, Millennium Management is the largest known holder with nearly $2 billion in holdings, which accounts for approximately 3% of the hedge fund’s $64 billion in assets under management. ETF analyst Eric Balchunas of Bloomberg describes Millennium as the current “king” of ETF holders and highlights the impressive number of institution types represented in the first 13Fs.
One notable holder is the State of Wisconsin Investment Board, a state pension fund, which recently revealed its holdings of nearly $100 million in spot BTC ETFs.
Bitcoin bulls are optimistic that the increased institutional adoption of Bitcoin through ETFs, coupled with favorable macroeconomic factors, will push the price above $70,000 in the near future. After positive US CPI figures were released, spot Bitcoin ETFs saw net inflows of over $300 million on Wednesday.
To sustain its upward momentum, the Bitcoin price needs to surpass its late April highs above $67,000. If this occurs, it could pave the way for a resurgence above $70,000 and a potential retest of yearly highs.
The performance of US equities could serve as an indicator for the Bitcoin price. Currently, the S&P 500 is reaching new record highs above 5,300 after a retracement.
Bitcoin may soon reach its own new record highs above $74,000. However, it is important to note that there are no guarantees, especially considering that only one month has passed since the halving. Historically, summers have been choppy or bearish for risk assets like stocks and Bitcoin, although this trend may not apply in election years. Additionally, post-halving rallies typically take 4-6 months to gain momentum, so a surge to new record highs in the coming weeks may be premature.
Nevertheless, this Bitcoin bull run is defying historical patterns and norms. ETF optimism already drove the Bitcoin price to new record highs before the halving, whereas historically, new record highs have occurred post-halving.
Bitcoin is evolving into a fully-fledged macro asset that does not follow highly predictable long-term patterns. The traditional three-year pump and one-year dump cycle that has been prevalent over the past 12 years may no longer hold true.
In conclusion, the Bitcoin market is witnessing significant developments, with institutions like Morgan Stanley increasing their exposure to Bitcoin through spot ETFs. This, combined with positive macroeconomic factors, has fueled optimism among Bitcoin bulls, who are hopeful for a continued price surge in the coming months.