Coin Stories News Block: VP Kamala Harris Changing Tune on Bitcoin? SEC Filings Show Surge in Institutional Adoption, Harris Pushes for Price Controls to Bring Down Grocery Costs
Aug 22, 2024
Kamala Harris, the Vice President of the United States, dives into the dynamic world of Bitcoin and institutional finance. She discusses the recent increase in institutional adoption of Bitcoin ETFs, highlighting major financial players getting involved. As elections near, she reflects on shifting political sentiments towards cryptocurrencies and the strategic push for crypto-friendly policies. Additionally, she warns about potential dangers of government intervention in the economy, drawing parallels to historical failures in Venezuela.
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Institutions Are Buying Through ETFs
- Institutional ownership of Bitcoin ETFs rose notably, with many advisors and hedge funds increasing or holding positions despite volatility.
- Large banks like Goldman Sachs and Morgan Stanley now hold ETFs, signaling growing mainstream adoption and client allocations.
Advisors Versus Quants
- Investment advisors now make up a growing share of institutional ETF holders and tend to view Bitcoin as long-term allocations.
- Hedge funds and quant firms also hold large positions but may trade based on algorithmic signals rather than conviction.
Quant Activity Isn't Long-Term Conviction
- Quant firms will quickly exit positions when arbitrage opportunities disappear, so their presence doesn't equal permanent demand.
- Still, any large institutional participation helps legitimize Bitcoin as an institutional-grade asset.