Big Investors Still on the Sidelines

gadrian in LeoFinance • 8 months ago

I discovered an article that dug up the average trade size for BlackRock's Bitcoin ETF. That's 326 shares or roughly 13k USD, according to one source. That suggests big investors are not yet involved.

Other participants in the Bitcoin ETF game, agree that the initial push was sustained mainly by retail investors.

This is an interesting discovery, as these ETFs are a perfect product that resolves many of the previous legal or accounting limitations some of these corporate firms had to enter crypto directly, as an investment.

So, if they are still waiting, what are they waiting for? For the first wave of retail to dwindle? That must be strange for them since they are used to making deals before retail gets to the table. More legal clarity on the base assets? Maybe, they are used to dealing with regulations. More derivative products based on spot ETFs? I'm sure they will appreciate them.

I'd like to think they prefer to invest directly, not through ETFs. But I doubt many are, at least in the countries where stricter laws are expected or already exist regarding crypto investments for businesses.

They can't be ignorant of the opportunity. Even after the pullback, Bitcoin's market cap is 10th in the top by all types of assets, including public companies, precious metals, cryptocurrencies, and ETFs.

It's above Warren Buffett's Berkshire Hathaway, and a little below Meta (was higher), with the next significant target being Silver, and I'm sure it'll go above Silver during this bull cycle. Who knows, maybe even above Amazon and Alphabet (Google) for a while.

We see some more FUD spread around to contribute to the halving pullback (suggestions Ethereum might be classified as a security, EU's new AML draft that bans non-KYC crypto transactions), but when we have news like the one I've shared in my latest weekly update of the largest pension fund in the world considering to buy Bitcoin, the longer term direction seems set in stone.

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#bitcoin-etfs #retail-investors #big-investors #bitcoin-market-cap #proofofbrain #hive-engine #pimp #archon #cent

8 months ago in LeoFinance by gadrian

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thebighigg 8 months ago

I prefer to invest on my own, I don't want those assets in some other idiot's hands. We will see how it plays out, they may be waiting to jump in because of lack of legal clarity? Who knows?

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gadrian 8 months ago

they may be waiting to jump in because of lack of legal clarity?

That's one option. However, if they have ETF shares instead of the base asset, they should be covered, regardless of what is decided for the base asset.

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jfang003 8 months ago

I think it really depends but I am not surprised. If the big money did invest, they might have already taken some profits as well. Not to mention that the ETF also adds way more manipulation due to the access of options. So retail can push up BTC if they want to.

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gadrian 8 months ago

Yeah, but that takes into consideration all orders, but to buy and to sell shares into the Bitcoin ETFs. So, they haven't felt their presence yet, at least not through the ETFs.

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outwars 8 months ago

I'm thinking they might be waiting for more dips in BTC. These big investors have very good fund managers, so I don't think they would want to miss the crypto bull run.

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gadrian 8 months ago

We were lower than this and the potential minimum for this pullback when ETFs were approved, and the sentiment was clearly positive, so it was likely to go up, which it did. They weren't waiting for lower prices, because they missed the start which was the best time to invest. Well, one week after the start was even lower, but I what's a couple of thousands more or less?

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outwars 8 months ago

I guess that's true. Since they missed the start, they won't enter? If the upside is still very high, I think it is still worth it. It could be they don't want too much risk.

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gadrian 8 months ago

I don't know what to think about it.

What if they don't buy in huge orders but instead split their orders into smaller amounts, and they still have participated from the beginning? That would make perfect sense.

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outwars 8 months ago

That would have been very risky of them, and would seem out of character. But that is a plausible explanation.

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gadrian 8 months ago

seem out of character

Not really. They do this in the stock market all the time.

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takhar 8 months ago

Perhaps, they need more clarity on the whole system and its processes or waiting for more opportune times. It is often said that big investors know something that the rest haven't known yet, that could also be a reason why they haven't entered yet.

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gadrian 8 months ago

Clarity, ok, I can see why they can't plunge into investments they might consider risky for various reasons since they need to follow certain rules. A better timing? I hope not! A better timing than one week after ETFs were approved would mean Bitcoin gets back to 30k, and I don't think it's possible soon, and maybe never. A better timing than now? Yes, that's possible.

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takhar 8 months ago

Oh yes! It's probably not a timing issue, especially from a price standpoint. The most opportune time would've been just around the ETF approval.

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rafzat 8 months ago

Why don’t you want to invest through ETFs?

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gadrian 8 months ago

Because I help to the centralization of Bitcoin, as native Bitcoin is sucked into a couple of wallets, while regular investors will end up holding fiat products like shares into ETFs or, at best, bitcoin on the Lightning Network, at the second layer.

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wolfplayzor 8 months ago

hmm i dont think big investors are waiting something, they must have a plan already, they dont waste time, time = money

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gadrian 8 months ago

Yes, you are right. I'd like to know their plan, lol.

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deeanndmathews 8 months ago

Good find, @gadrian -- good find!

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gadrian 8 months ago

Thank you!

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deeanndmathews 8 months ago

You're welcome!

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djbravo 8 months ago

As far as I think and my analysis says Bitcoin will come second, if it can't come second then it must come third.

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gadrian 8 months ago

Well, we'll see. The market caps of those companies won't stand still either.

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djbravo 8 months ago

Thanks for the details.

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revolverocelotyt 8 months ago

Wow bitcoin made it to 10th position this is a great achievement.

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gadrian 8 months ago

It was even higher. It is in 8th position now.

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revolverocelotyt 8 months ago

Wow I never expected this to happen.

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precab 8 months ago

What is really the side effect in ETFs

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gadrian 8 months ago

If that's a question, the side effect is that Bitcoin gets sucked into a couple of wallets while holders of ETF shares don't own real Bitcoin.

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biyimi 8 months ago

I really think at this point, a lot of investors are really afraid of taking the step of investing due to the uncertainty

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gadrian 8 months ago

I don't think there's too much uncertainty, other than short term...

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