Bitcoin shows progress on institutional front, ‘but speed of funding is limited’
The launch of Bakkt, launch of Galaxy Digital’s brand new BTC funds, Fidelity’s bitcoin product and TD Ameritrade’s bitcoin trading service on the Nasdaq via its brokerage platform marked some of the marquee events over the past 12 months, but according to Vision Hill’s recent report, constructive participation is yet to enter the space.
Capital wise, data from Grayscale’s report glorified the growth of Bitcoin-focused products, as Grayscale Bitcoin Trust witnessed the largest quarterly inflow of $171.1 million in Q3, registering a growth of over 200 percent from Q2. The narrative was not limited to Bitcoin, as many fundamental-focused, crypto-native hedge funds improve investments in public and private digital assets.
The report suggested that few challenges were still evident in the industry: since crypto-assets were still new in the financial industry, major investors struggled between hedge fund-structures or venture fund structures for digital asset management.
As observed in the past, Bitcoin narrative changes from time to time, whether it is a store-of-value asset or a macro hedge. In reality, digital assets as a whole did not completely fit a certain structure, leading to a diversified approach from various investors.
Adding to the list of constraints, a major hurdle faced by a larger institution is the lack of defined boundaries, for the data and information available. The study admitted that substantial progress has been made from the institutional front, but the speed of funding has been limited to a certain pace.
Bitcoin’s valuation resulted in another burst of price volatility after the coin registered a 6.60 percent growth in the past 24 hours. The resistance at $7500 was breached and at press time, it was valued at $7518.