Quote:
Originally Posted by afc wimbledon
It's important to realize financial institutions aren't 'buying bitcoin' they are positioning themselves to facilitate and make money out of everyone else's purchases of Bitcoin, they don't care which way the market goes, they are making money on the movement
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These institutions who are planning on effectively being market makers are required to have a certain 'float' of BTC which is helping facilitate the increase in pricing. Sure they are not purchasing BTC for the sole reason of asset appreciation, but they are contributing. The more these institutions hold, the more relevant BTC comes as a medium for transacting. If BTC gets enough adoption and relevancy as a medium, this only increases demand on a finite supply.
ETFs on the other hand are purely there to hold physical BTC. The third Canadian ETF is opening this week or next. They truly are buying bitcoin for the purpose of holding.
Then you look at companies like MicroStrategy or Ruffer and they are also saying they are holding these assets. They are not transacting with them.