Whales versus krills – Whether in the traditional markets, or more particularly in the cryptocurrency market, the very wealthy investors love to shop at sale prices unreasonably lowbecause of a bloodbath and a sales panic small investors. This is exactly what seems to be happening since unchecked fear gripped the cryptosphere, especially more recently after the SEC charges against Binance and Coinbase : BlackRock and other wealthy US institutions buy like never before (but indirectly) bitcoins (BTC).
Bitcoin in a bear market? Top start for institutional purchases!
Since mid-March 2023, the bitcoin price had never gone below the $25,000. But that was without counting on the violent attack of the Securities and Exchange Commission (DRY) against crypto giants Binance And Coinbase.
This June 15, 2023, the price of BTC is even touching the $24,900. And it seems that these panic sales “weak hands” have (and will) greatly benefit the (very) big player, size XXL whale. Indeed, some analysts report that multinationals of investment funds and banks greedily line the pockets of an asset very linked to the king of cryptos.
“Did you know that while the SEC is busy suing Binance and Coinbase, BlackRock and the biggest US banks have been silently buying [indirectement] RECORD amounts of Bitcoin?
These [fonds et] banks that buy [indirectement] of BTC in the 1st quarter of 2023 include:
– BlackRock;
– Bank Of America,
– Fidelity.
What can they possibly know? »
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BlackRock & Co’s secret? They gorge themselves on bitcoins via MicroStrategy shares
To invest discreetly in the most valued of crypto-assets, BlackRock and company do not buy bitcoins directly. Instead, they invest in society MicroStrategy and its 140,000 BTC war chest !
Briefly recall that the company Michael Saylor never stoppedaccumulate bitcoins since the end of 2020. At this rate she might end up owning 1% of all existing (and future) supply of 21 million BTC. Suffice to say that this company is intimately linked in the future of bitcoin. The very rich banks and investment funds are not mistaken, and have bought record amounts of MSTR stock from MicroStrategy, listed on the Nasdaq.
The mega-fund BlackRock is now approaching 600,000 MSTR shares since 1er quarter of 2023 ($157 million). For the banking giant Bank Of America (BoA) and the investment fund Fidelityit is above all the addition super massive and sudden of shares of MicroStrategy which is remarkable. Indeed, these two institutional entities went from less than a thousand of MSTR shares at close to 227,000 shares for BoA, and over 97,000 shares for Fidelity.
To explain, at least in part, this phenomenon, it should be remembered that the SEC stubbornly refuses to authorize a Bitcoin ETF (exchange-traded fund) type “spot” (i.e., settled in BTC, not in dollars). Moreover, given the merciless war that this US regulator now delivers to the crypto sector, we understand better why these refusals systematic. This is no doubt Whyin addition to discretion, the institutional giants find themselves betting on MicroStrategy’s 140,000 bitcoins, through the massive purchase of its shares.