Ryze Recap 6/10: Fidelity Finds Positive Sentiment Among Institutions, Germany Launches Bitcoin ETF

The biggest Bitcoin news in 2 minutes or less. Presented by Ryze 🚀

It’s Wednesday, June 10th. We’ve got two important stories for you today.

Fidelity Report on Institutional Investment in Bitcoin

Fidelity Digital Assets, a division of multi-trillion-dollar asset manager Fidelity Investments, has released its 2020 report on institutions investment in Bitcoin and other crypto-assets. Fidelity surveyed almost 800 hedge funds, investment advisors, family offices, pension funds, and endowments. The report paints a positive picture, with over 80% of financial institutions surveyed “finding something appealing about the asset class.”

Highlights:

  • European investors shared a slightly more positive outlook than US sentiment, and are much more likely to hold Bitcoin than US institutions.

  • The number of institutions trading Bitcoin futures more than doubled in the last year.

  • Over 35% of institutions see value in Bitcoin as an uncorrelated asset, and a little under a third see Bitcoin as an innovative technology play.

  • Concerns about price volatility and market manipulation have dropped significantly in the last year.

Why it matters:

  • Increasing institutional interest in Bitcoin is a trend that has been playing out over the past several months. This report comes at the heels of record-breaking institutional Bitcoin derivatives volume, a bullish report from Bloomberg, and massive new inflows into Grayscale’s GBTC investment trust, which we’ve recently covered on 5/29 and 6/1.

  • Billionaire fund manager Paul Tudor Jones and other macro investors have recently come out in support of Bitcoin as an uncorrelated asset and hedge against existing financial systems. Fidelity’s report indicates that many other institutional investors share this sentiment.

  • Institutions investing in Bitcoin helps legitimize the asset class and brings credibility to its value as an investment. It also shines a regulatory spotlight on the asset. Positive sentiment among institutions can incentivize lawmakers to enact clear regulation that promotes innovation rather than stifling it.

German Exchange Lists a Bitcoin ETP (Exchange-Traded Product)

London investment firm ETC Group is launching a Bitcoin ETP, or exchange-traded product, to be traded on German public markets. The product, called BTCE, functions as a US ETF (exchange-traded fund) does. The security is backed by Bitcoin, with each share corresponding to a specific amount of Bitcoin. The CEO of ETC Group said, “Investors get the benefit of trading and owning bitcoin through a regulated security, while having the option to redeem bitcoin if they choose.”

Why it matters:

  • A regulated financial instrument makes it easier and less risky for institutional investors to get exposure to Bitcoin.

  • GBTC, Grayscale’s Bitcoin unit investment trust, is an existing exchange-traded product listed in the US. It has had record inflows recently, with nearly double the weekly new investment as previous months. The new German ETP may find similar success given the current macro environment.

That’s all for today! We’ll be back tomorrow with another Ryze Recap.

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Written by Ryze Financial— helping you understand and invest in Bitcoin, on your own terms.