Funds Want To Invest Up To 15% Of Their AUM In Bitcoin, According To Hard SEC Data

The U.S. Securities and Exchange Commission (SEC) has been a long-standing roadblock to the approval of spot Bitcoin ETFs. However, recent data suggests a shift, especially among Wall Street players, is underway. 

Taking to X on January 3, Marty Party observed that a growing number of funds that traditionally invest in securities are now making amendments to their prospectuses to allocate up to 15% of their assets under management (AUM) to Bitcoin.

 

  1. SEC Data Signals Change: Recent data from the U.S. Securities and Exchange Commission (SEC) indicates a notable shift among traditional funds, with many amending prospectuses to allocate up to 15% of their Assets Under Management (AUM) to Bitcoin.
  2. Growing Institutional Interest: The move suggests a growing bullish sentiment among institutional investors towards Bitcoin, showcasing a willingness to increase their exposure to the cryptocurrency.
  3. Regulatory Pressure: The amendments to prospectuses may indicate mounting pressure on the SEC to approve spot Bitcoin Exchange-Traded Funds (ETFs), a development eagerly anticipated by the crypto community.
  4. Specific Fund Changes: Notable examples include Advisors Preferred Trust, allowing up to 15% of AUM in Spot Bitcoin through Grayscale, and Arca Asset Management Trust planning up to 50% AUM in Spot Bitcoin via Grayscale, ProShares Bitcoin Strategy ETF, and futures contracts.
  5. SEC Hesitations: Despite the institutional interest, the SEC has been cautious in approving spot Bitcoin ETFs, citing concerns about market manipulation and investor protection.
  6. Potential ETF Approval Impact: Approval of a spot Bitcoin ETF, expected possibly in January 2023, could be a significant win for the crypto market, opening doors to more investors and legitimizing Bitcoin as a mainstream asset class.
  7. Market Reaction Uncertainty: The blog notes a recent flash crash in Bitcoin prices following reports suggesting the SEC might delay spot Bitcoin ETF approval. Analysts attribute the crash to rising funding rates.
  8. Ongoing Trend: The trend of institutional investors allocating more funds to Bitcoin is anticipated to continue, with close monitoring of price reactions in the coming weeks.

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