Institutional Interest In Bitcoin: Expert Sheds Light On ‘Real Indicator’

A crypto market enthusiast argued that the relative performance of crypto stocks when compared with BTC Price shows the intrinsic faith in the digital assets ecosystem even among mainstream investors. This statement came in the context of the US regulators potentially approving the spot Bitcoin ETFs in the next few weeks.

Also Read: XRP Price Prediction: Analyst Sees Potential For Growth In This Market Cycle

Enough Proof Of Existing Institutional Money In Crypto

Bitcoin advocate James Lavish said the fact that the stocks of Coinbase ($COIN), Microstrategy ($MSTR) and the Grayscale Bitcoin Trust (GBTC) are doing well in correlation with Bitcoin (BTC) Price is in itself a sign of institutional interest in the crypto market. He said the performance of these stocks is a small indicator of whether or not institutional money would flow in to the spot Bitcoin ETFs, if and when approved.

“They (crypto stocks $COIN, $MSTR and $GBTC have been trading at a high beta to Bitcoin as it has come up. The reason is they (institutional investors) know that there would be in demand and these are going to benefit from it.”

However, he acknowledged that it is not an official indicator but rather a real indicator of the institutional interest in the crypto industry, speaking to crypto influencer Scott Melker in an interview.

The U.S. Securities and Exchange Commission is widely expected to deliver the approval announcements for the various spot Bitcoin ETF products from issuers like Blackrock, Fidelity, Valkyrie and Ark Invest before the January 10, 2023 deadline. Earlier, CoinGape reported Ark Invest CEO Cathie Wood’s comments on the tone of deliberations between the ETF filers and the US SEC officials. She gave a bright outlook for the possibility of a spot Bitcoin ETF approval as soon as January 2024.

Crypto Stocks Vs BTC Price

The MicroStrategy Inc (MSTR) stock price rose by a staggering 21% in the last 30 days compared to the 15% rise in BTC Price during the same period. Similarly, the Coinbase Global Inc (COIN) stock price grew by as much as 43% in the same period. Hence, the crypto stock segment maintained a healthy correlation with Bitcoin.

Also Read: Cathie Wood: Spot Bitcoin ETF Discussions With US SEC ‘Very Positive’