The world of traditional finance is witnessing a significant shift in its approach to cryptocurrency, especially Bitcoin. Recent filings to Securities and Exchange Commission (SEC) reveal an increase in institutional investment in Bitcoin-related financial products, particularly spot Bitcoin exchange mutual funds (ETF). This trend is being fueled by both established giants and smaller firms, with Hong Kong-based investment institutions emerging as major players.

Traditional asset management enters the cryptocurrency space

At the head of this responsibility are large companies such as MercadoLibre, the largest e-commerce platform in Latin America. SEC records revealed a Bitcoin asset of $29 million as of March 31, demonstrating their commitment to digital assets despite market volatility. This is in line with reports from other financial giants such as BNP Paribas and BNY Mellon, which have stakes in their Bitcoin ETF, pointing to wider acceptance in the traditional investment environment.

ETF leadership in Hong Kong

This trend is particularly pronounced in Hong Kong. There-based investment firms make a significant amount of purchases from their spot Bitcoin ETF listed in the United States. Ovata Capital Management stands out as the largest buyer of spot Bitcoin ETF ever, having invested a staggering $75.53 million in four U.S.-listed options. Its largest holdings include Fidelity Wise Origin Bitcoin ETF (FBTC), Grayscale Bitcoin Trust (GBTC), and Bitwise Bitcoin ETF (BITB). This significant investment shows a growing interest in Bitcoin, which can be easily traded among Asian investors.

The mid-May deadline for 100F applications, which is mandatory for institutions with over $13 million under management, promises to shed even more light on corporate involvement in Bitcoin ETF. Analysts expect these filings to provide a clearer picture of Bitcoin's integration into traditional asset management strategies. Close monitoring of these applications will reveal the speed at which Bitcoin penetrates various financial portfolios.

Bitcoin price is on the rise

This increase in institutional investment coincides with a positive development in the Bitcoin market. Recent economic data showing that the job market is cooling and unemployment is rising in the US has led to speculation of a potential rate cut by the Fed. This triggered a surprise rebound in the Bitcoin price, which is currently above $63,500.

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