Analysis: Wall Street institutions have entered the Bitcoin market and have controlled 47.9% of the current Bitcoin supply

Bitcoin hits a record high, and the S&P Dow Jones Cryptocurrency Index is about to be released. Unlike the last round of bull market, which was full of retail investors speculating, this time, Wall Street institutions have replaced retail investors and become the protagonists of the Bitcoin bull market.

Since October, various Wall Street investment institutions have entered the market to increase their Bitcoin holdings. Grayscale, the world's largest digital currency management company based in New York, has seen its assets under management soar to a record high of $10.4 billion, up more than 75% from September, and its Bitcoin fund has risen by 85%.

According to relevant data statistics, if the bitcoins held by trust funds, listed companies, governments, and digital currency projects are added together, Wall Street already controls 47.9% of the current Bitcoin supply in 2020.

The change in Wall Street's attitude towards Bitcoin will undoubtedly play a key role in the future development of Bitcoin, especially in terms of global assets and compliance.

A few years ago, BlackRock CEO Fink and JPMorgan Chase CEO Dimon and other top Wall Street tycoons still disdained Bitcoin. In their view, Bitcoin, a cryptocurrency, is at best a tool used by some underground forces to launder money illegally, and its volatility is extremely high, which does not meet the threshold of Wall Street investment at all.

Although Bitcoin has become famous after a sharp rise in the past few years, in the eyes of Wall Street, the bubble of Bitcoin is still too big. On the other hand, the attitudes of governments of various countries towards the cryptocurrency industry are also wavering, and the possibility of strong suppression by government departments in the future cannot be ruled out.

Since the beginning of this year, as the market value of Bitcoin continues to rise, Wall Street's attitude towards Bitcoin has also changed significantly. As Bitcoin has been recognized by regulatory authorities in some countries, especially the returns brought by Bitcoin's huge appreciation potential, global financial giants have become very interested in it.

BlackRock, the world's largest asset management company, manages about $7 trillion in assets. In November, its chief investment officer Rieder said that Bitcoin has been "accepted by most people" and that Bitcoin has real potential to "replace gold to a large extent."

Its CEO Fink also pointed out that the increasing popularity of Bitcoin has affected the status of the US dollar to some extent, especially the international holders of US dollar assets have begun to change their perception of it. If there is a digital currency that is different from US dollar assets, it may even change the status of the US dollar as a reserve currency.

Fink also said that Bitcoin is still a relatively small market compared to other markets, but Bitcoin has the potential to develop into a global market.

Image source: pixabay

Author: Amy Liu

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