Coinbase Bytes

Your weekly digest of crypto news

Bitcoin price dropped as low as $93,000 on Tuesday morning before recovering. Meanwhile, several new crypto ETFs received applications with the SEC this week.

Here’s what else happened in crypto markets this week…

Major funds with $100M+ just reported sizable BTC buys. From Goldman Sachs to the Bank of Montreal — here are the institutions adding bitcoin.

A multibillion-dollar credit fund is set to get tokenized. Plus, more key numbers from around the cryptoverse.

Coinbase Bytes

Your weekly digest of crypto news

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MARKET MOVES

Bitcoin price stumbles as traders eye inflation data

After hitting a new all-time high of $94,640 on Monday, bitcoin price dropped as low as $93,000 on Tuesday morning before recovering.

Meanwhile, several new crypto ETFs received applications with the SEC this week. Nasdaq filed on behalf of CoinShares to create ETFs for Litecoin and XRP.

Here are three more market stories you should know about…

Goldman, pension funds lead Q4 institutional crypto buying

In a reversal of recent trends, Ether exchange-traded funds (ETFs) have seen $393 million of inflows over the last month while bitcoin ETFs have seen outflows totalling $376 million.

Despite traders’ new fondness for ETH investment products, ETH prices remain far below the all-time high of nearly $4,900 set in 2021, although they have rebounded roughly 30% from earlier this month.

But could ETH regain traction? A new network upgrade, called Pectra, is set to roll out in April, and it could help the original smart-contract compatible blockchain better compete against newer rivals like Solana. 

According to the Block, derivatives markets are showing that many pro traders expect ETH prices to bounce due to both Pectra and signs that “investor attention is shifting away from Solana’s memecoin-dominated ecosystem.” 

Fresh crypto ETF filings: Litecoin, XRP get applications

Back in 2022, Hong Kong outlined its ambitions to become a major center for the crypto industry, even as mainland China banned almost all crypto trading. In the years since, Hong Kong regulators have issued licenses for crypto-trading platforms and even launched spot crypto ETFs.

This week, Hong Kong’s Securities and Futures Commission announced a major expansion of permitted crypto activities. According to Reuters, Hong Kong is set to “establish new licensing regimes for over-the-counter trading in virtual assets and for custody services” and is “advancing on the regulation of stablecoins.” 

Stable stakes… On Monday, a consortium including Standard Chartered and Animoca Brands announced that it would seek a license from the Hong Kong Monetary Authority to create a Hong Kong dollar-backed stablecoin.

BIG MONEY

Institutions buying bitcoin now, and what they’re telling us

Slowly but surely, bitcoin is becoming an institutional investment darling. And it’s not just because of Strategy (formerly MicroStrategy).

Last week, some of the biggest asset managers in the world provided disclosures about their stock investments from the fourth quarter of 2024. And bitcoin ETFs were a major favorite, with billions of dollars allocated by buyers including Goldman Sachs, Wisconsin’s pension fund, the Bank of Montreal, and one of Abu Dhabi’s sovereign wealth funds.

“Institutional investors tripled their holdings of spot bitcoin ETFs in Q4 2024, reaching $38.7 billion, SEC filings show,” reports CoinDesk.

What were the biggest revelations? Let’s dive in. 

First off, how do we know what these funds hold?

Each quarter, fund managers who oversee more than $100 million in public equities are required to disclose their holdings to the U.S. Securities and Exchange Commission. The most recent “13F” filings reflect portfolio changes made during the fourth quarter of last year, through Dec. 31.

These filings give investors valuable insight into how the largest portfolios are playing the market. Since the launch of spot bitcoin ETFs last year, the quarterly filings have also become a proxy for institutional adoption of digital assets. 

To date, more than 1,000 funds that are required to file 13Fs have purchased spot bitcoin ETFs, and their cumulative holdings top $38.7 billion, up from $12.4 billion at the end of Q3 2024.

One of Abu Dhabi’s sovereign wealth funds made a big splash

Mubadala Investment Company, one of Abu Dhabi’s state-owned investment funds, disclosed purchasing $436.9 million worth of bitcoin ETF shares last quarter, making it the seventh-largest holder of BlackRock’s leading bitcoin ETF.

“The accumulation by sovereign wealth funds, pension funds, and other major institutional investors is just getting