The market value of Bitcoin has fallen below $1 trillion, and the bull market is over? At least institutional investors don't think so
Dragged by the collapse of US stocks, the cryptocurrency market suffered the biggest decline since March today, and the market value of Bitcoin dropped below $1 trillion. Many people began to ask, is the bull market over?
The answer may be no, at least in terms of institutional investors' interest in the cryptocurrency market, the bull market is still there, which can be proved by two major news yesterday:
- Fidelity, one of the world's largest financial institutions, is seeking approval from the US SEC to launch a Bitcoin ETF
American exchange giant Chicago Board Options Exchange (Cboe) or re-listing Bitcoin futures
Fidelity applies for Bitcoin ETF
A new SEC document shows that Fidelity, one of the largest financial institutions in the world, is seeking approval from SEC to launch Bitcoin ETF.
The ETF will be registered as Wise Origin Bitcoin Trust, which allows retail investors to bet on the price of Bitcoin without having to buy and store cryptocurrencies themselves. If approved, Fidelity Service Company Inc will act as the administrator, and Fidelity Digital Assets will host the underlying Bitcoin of the ETF.
SEC has not approved any Bitcoin ETFs, although many companies have applied. Gemini, an crypto service company owned by Winklevoss twins, has applied for several Bitcoin ETFs since 2013. SkyBridge Capital of AnthonyScaramucci has just applied for one, and VanEck, an asset management company, has been trying to launch one for many years.
Cryptographic currency investors have been keen to buy Bitcoin ETFs, and companies like Grayscale and Galaxy Digital also offer similar cryptocurrency investment products in an attempt to meet this demand. The Gray Bitcoin Trust (GBTC) currently manages more than $36 billion in bitcoins, although its premium is -12%.
The proposed ETF is not Fidelity's first foray into cryptocurrency—last year, the bank launched its first investment product only for Bitcoin in the form of Wise Origin Bitcoin Index Fund I.
The global macro director of Fidelity said in a recent statement that Bitcoin has "unique advantages" over gold.
- American exchange giant Chicago Board Options Exchange (Cboe) or re-listing Bitcoin futures
Ed Tilly, CEO of the exchange giant Chicago Board Options Exchange (Cboe), said that they may re-launch Bitcoin futures.
Tilly told Bloomberg in a report published on Thursday:
"We are still interested in this field, and we have not given up. We are keen to build the whole platform. Retail and institutional demand for Bitcoin is great, and we need to be here. "
In December 2017, Cboe became the first regulated exchange in the world to launch Bitcoin futures, but for unknown reasons, it decided to stop providing Bitcoin futures from June 2019. However, the exchange did not rule out the possibility of issuing cryptocurrency derivatives again. It said it was "evaluating" its strategy.
After Cboe stopped Bitcoin futures, the cryptocurrency market ushered in the biggest bull market in history in 2020, and institutional investors poured in wildly.
Cboe's competitor, CME Group, also started to provide Bitcoin futures in December 2017, but they persisted in this service and became the largest regulated Bitcoin futures place in this field. As of March 24, 2021, CME's Bitcoin futures position was close to USD 3 billion, ranking only behind the unregulated exchanges Binance,OKEx and Bybit.
In addition to Bitcoin futures, Cboe seems to be keen on listing Bitcoin exchange-traded funds. The asset management companies VanEck and WisdomTree have applied to the SEC of the United States for Bitcoin ETFs listed on Cboe bZx exchange.
Tilly said: "We are very eager to get the approval of VanEck ETF."
After signing a partnership with CoinRoutes, a trading software company, in December last year, Cboe will launch an crypto index this year.
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