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Asset Managers Increasing Bitcoin Allocations
Asset managers are recognizing the benefits of Bitcoin as a portfolio diversifier and actively increasing their Bitcoin allocations. Crypto asset trading firm QCP Capital noted a growing trend of adding Bitcoin allocations for diversification purposes. Requests for structured products like Accumulators and FCNs have surged, indicating a strong interest in diversifying investment portfolios with BTC.
Client Demand for BTC Spot ETFs
Wealth desks at major banks have reported significant demand from clients for BTC spot ETFs and structured products like Accumulators and FCNs. This demand highlights the increasing popularity of Bitcoin among investors seeking diversification opportunities.
Bitcoin’s Price Outlook
Bitcoin recently surpassed $70,000, driven by news of the London Stock Exchange’s plans to introduce Exchange-Traded Notes (ETNs) for BTC and ETH in May. QCP Capital expects Bitcoin to maintain its momentum, potentially reaching the $100,000 mark. The cryptocurrency’s ability to offer independent returns from traditional assets makes it an attractive option for asset managers.
Trade Ideas for Bitcoin
- Consider strategic positioning in the market with the elevated BTC Spot-Forward Basis, offering front-end yield exceeding 20%.
- Explore Accumulators as a way to acquire BTC at a discounted price, anticipating interest from traditional finance players.
Bitcoin ETNs on London Stock Exchange
The London Stock Exchange has announced plans to debut ETNs for Bitcoin and Ethereum on May 28. This move signifies a significant step towards mainstream adoption of digital assets. Companies interested in listing their Bitcoin and Ethereum ETNs can start submitting applications from April 8.
ETFs vs. ETNs
While ETFs and ETNs both offer exposure to assets, they differ in structure. ETFs represent ownership of underlying assets, similar to a basket of stocks, while ETNs function as unsecured debt notes issued by a bank. The upcoming Bitcoin and Ethereum ETNs on the LSE will be subject to Financial Conduct Authority regulations, limiting participation to professional investors only.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
