Despite a 12% drop in Bitcoin’s (BTC) price during the second quarter, institutional investors have significantly ramped up their investments in BTC exchange-traded funds (ETFs). According to asset manager Bitwise’s recent report, the number of institutional holders surged by 14%, reaching 1,100 from 965 in the previous quarter. Notably, these institutions now manage over $11 billion in BTC ETFs, demonstrating a robust commitment to cryptocurrency.

Bitwise’s Chief Investment Officer, Matt Hougan, emphasized the growing institutional interest, stating, “This is a great sign. If institutions will buy bitcoin when prices are volatile, imagine what could happen in a bull market.” This sentiment underscores a strong belief in Bitcoin’s long-term potential, signaling a shift towards more substantial institutional involvement.

The report also counters the critique that bitcoin ETFs are primarily retail-driven. Historical data reveals that institutional adoption rates for these ETFs are unprecedented. Looking forward, inflows into bitcoin ETFs are expected to increase steadily, with projections showing even larger investments in the coming years. Wall Street titan Goldman Sachs has already positioned itself in seven of the eleven U.S. bitcoin ETFs, underscoring the financial sector’s burgeoning interest in cryptocurrency.

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U.S. Senator Cynthia Lummis recently tweeted her support for creating a strategic Bitcoin reserve, claiming it would significantly reduce the national debt, enhance America’s position as a leader in financial innovation, and secure a prosperous future for coming generations. The proposal, named the “BITCOIN Act,” seeks to address the escalating concerns regarding the national debt through innovative financial strategies.

Senator Lummis believes that integrating Bitcoin into the national financial strategy could halve the U.S. debt by 2045. She argues that this approach would not only stabilize the financial landscape but also secure a pioneering position for the U.S. in the global financial arena.

The initiative has elicited a mixed response from lawmakers and financial experts. Supporters view it as a progressive move towards leveraging digital assets for economic stability, while critics express concerns over the inherent volatility of cryptocurrencies. The debate over the proposal is poised to grow as it progresses towards formal consideration in Congress.

Over the years, Bitcoin has seen significant price fluctuations, with each year marking notable changes. As of August 21, 2024, Bitcoin’s price stands impressively at $59,480. This reflects a substantial growth from its modest beginnings in 2010 when it was valued at just $0.07.

Tracking back through the years: In 2023, the price was $26,152, and the year before that, it stood at $21,325. During the pandemic year of 2021, Bitcoin’s price soared to $49,114. This follows a steady upward trajectory from $11,731 in 2020 and $10,238 in 2019. Before this surge, prices were much lower, with 2018 seeing Bitcoin at $6,398 and 2017 at $4,019, which was a massive rise from just $579 in 2016.

These numbers highlight Bitcoin’s volatile yet upward market journey, showcasing how this cryptocurrency has grown to become a significant financial asset over the past decade, marked by spikes, dips, and recoveries.

Disclaimer: Market capitalizations and data can vary in real-time. The information provided here is intended purely for educational purposes and should not, under any circumstances, be construed as financial advice.

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BlackRock’s iShares Ethereum Trust, known as ETHA, has reached a groundbreaking milestone by amassing over $1 billion in net inflows, setting a record as the first U.S. spot Ethereum exchange-traded fund (ETF) to achieve this feat. This significant achievement underscores the growing investor interest in Ethereum-based funds, despite a comparative slow start relative to Bitcoin-focused ETFs like BlackRock’s iShares Bitcoin Trust, which hit the same mark within four days.

On August 20, ETHA recorded an impressive influx of $26.8 million, propelling it past the $1 billion threshold. Farside Investors’ data highlighted that among Ethereum funds, only ETHA and Bitwise’s Ethereum fund (ETHW) saw gains on that Tuesday, contrasting with stagnant flows in other competitors, except for Grayscale’s ETHE which has experienced about $2.5 billion in withdrawals since its conversion into an ETF.

Despite facing challenges such as high fees and significant outflows in its early days, particularly with Grayscale’s ETHE, BlackRock’s Ethereum and Bitcoin ETFs have recently outstripped Grayscale in total assets managed. This shift marks a pivotal point, indicating a robust and enduring interest in cryptocurrency investments among mainstream investors.

Data 

Bitcoin technology is impressive for just how many fundamental problems with money it solves. One advantage of bitcoin that is often touted is that it provides for final settlement of transactions.

Final settlement means that, once a transaction is mined and enough subsequent transactions have been mined as well, it would take an infeasible amount of energy to go back and reverse the original transaction. There is a well-known guideline that a bitcoin transaction can be considered final if five additional blocks are then added to the timechain following the block containing the transaction.

(For technical readers: With today’s mining hash rate of about 585 exohashes per second, the…

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Miami-based Bitcoin startup TMRW has raised $1.3 million in pre-seed Funding to develop its social payments app powered by the Bitcoin Lightning Network. Maple VC led the funding round, and Bitcoin angel investors like Brad Mills joined the round.

TMRW aims to leverage the Lightning Network’s speed and low costs to enable cross-border peer-to-peer payments via Lightspark and ZeroHash. The app uses Universal Money Addresses, an open payment standard built on Lightning, to send fiat and Bitcoin instantly across borders.

This allows TMRW to facilitate fast, affordable remittances to regions like the Caribbean, where traditional providers charge high fees. Remittances are a major use case for…

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The notorious Mt. Gox exchange has made its first major Bitcoin transaction in weeks, shifting over $700 million worth of BTC to unknown wallets.

According to data tracked by Arkham Intelligence, Mt. Gox moved 12,000 BTC worth $709 million to one address and 1,265 BTC worth $75 million to another early Wednesday. The recipient addresses are unknown, sparking speculation that Mt. Gox could distribute more coins to creditors from its remaining Bitcoin hoard.

Mt. Gox owes billions to depositors affected by its massive 2014 hack. The exchange has been slowly reimbursing victims, putting selling pressure on markets this summer.  They have returned about 68% of lost user funds so far. But the…

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