Coin Stories News Block: Institutions Pivot to Bitcoin as U.S. Credit Outlook Turns Negative, Gold Demand Surges But Bitcoin Has More Upside
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May 19, 2025 The discussion dives into the surge of institutional investments in Bitcoin, highlighting major funds flipping from traditional assets amidst market turbulence. The U.S. credit outlook takes a hit as debt levels rise, pushing some to see Bitcoin as a safer bet. Gold demand is soaring, yet experts argue Bitcoin has even more potential upside. Exciting corporate adoption is unfolding globally, with significant acquisitions made by entities like the Abu Dhabi sovereign wealth fund and a Brazilian treasury company.
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Institutions Hold Bitcoin Confidently
- Institutional investors like Abu Dhabi's Mubadala and Brown University continue holding or increasing Bitcoin exposure despite market dips.
- This signals confidence from long-term allocators embedding Bitcoin in portfolios regardless of short-term volatility.
Bitcoin ETF Positions Reflect Trading Strategies
- Some institutions, like Wisconsin Investment Board, may use Bitcoin ETFs not for long-term holding but for trading strategies such as the basis trade.
- Collapse of futures premiums led hedge funds to unwind Bitcoin ETF positions despite ongoing interest.
Shifting Institutional Bitcoin Exposure
- While hedge funds sell Bitcoin ETF holdings, public funds and pensions increase Bitcoin strategy allocations significantly.
- This rotation shows short-term traders exit but long-term institutional allocators continue integrating Bitcoin.