Bitcoin Price Surges as Morgan Stanley Reveals Major Holdings in US Spot Bitcoin ETFs
The price of Bitcoin (BTC) has experienced a significant increase this week following the release of US CPI data that indicated a decrease in price pressures. Additionally, major financial institutions like Morgan Stanley have disclosed substantial holdings in US spot Bitcoin ETFs.
Currently, Bitcoin is trading just below $66,000, reaching a monthly high of over $66,750 earlier today.
In a 13F filing on Wednesday, Morgan Stanley revealed holdings of $270 million in spot Bitcoin ETFs. The investment banking and asset management giant had previously announced 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 BTC holdings coincides with other institutional investors revealing their own holdings. Based on Q1 13F filings, more than 500 asset managers currently have exposure to spot Bitcoin ETFs. Millennium Management is the largest known holder, with nearly $2 billion in holdings, accounting for approximately 3% of the hedge fund’s $64 billion in AUM.
According to Bloomberg ETF analyst Eric Balchunas, Millennium is currently the dominant ETF holder. Balchunas added that the new spot Bitcoin ETFs have about 200 times the average number of holders for a new ETF. He also noted the impressive representation of various institution types in the first 13Fs.
Among these holders is the State of Wisconsin Investment Board, a state pension fund, which revealed holdings of nearly $100 million in spot BTC ETFs.
Bitcoin bulls are hopeful that the increased optimism surrounding Bitcoin’s institutional adoption through ETFs, combined with macroeconomic factors, can push the price above $70,000 in the near future.
Following positive US CPI numbers, spot Bitcoin ETFs saw net inflows of over $300 million on Wednesday. This upward movement helped Bitcoin surpass its 21 and 50-day moving averages and reach new monthly highs.
To continue its upward trajectory, the Bitcoin price must surpass its late April highs above $67,000. Achieving this could potentially pave the way for a pushback above $70,000 and a retest of yearly highs.
The performance of US equities may serve as an indicator for Bitcoin’s price. Currently, the S&P 500 is reaching new record highs above 5,300 after a retracement.
Bitcoin may soon follow suit and establish its own record highs above $74,000.
However, it is important to note that there are no guarantees, especially as we enter the summer season with only one month passing since the halving. Summers tend to be a volatile and bearish period for risk assets like stocks and Bitcoin, although this rule may not always apply during election years.
Additionally, post-halving rallies typically take 4-6 months to gain momentum, rather than occurring within the first month. Therefore, a surge to new record highs in the coming weeks may be premature.
Nevertheless, this current Bitcoin bull run is defying historical patterns and norms. ETF optimism previously drove the Bitcoin price to new record highs before the halving, whereas historically, record highs have occurred after the halving.
Bitcoin is evolving into a mature macro asset, which means that its long-term patterns are not always obvious or predictable. The traditional three-year pump followed by a one-year dump pattern that has been observed over the past 12 years may no longer be applicable.
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