Government Sales Meet Insatiable Demand for Bitcoin
Tug-of-War in Bitcoin: The Race for ETF Adoption, the Impact of Government Asset Liquidation, and Breaking Down Bitcoin Related Asset Performance.
Introduction
The Bitcoin investment landscape is being reshaped by evident supply shortages, US government asset liquidations, and a noticeable dominance of holding strategies over mining. The government's sale of Bitcoin contrasts with the accumulation trend among banks and potentially other nation-states, signaling a complex interaction of forces that could influence Bitcoin's short-term volatility and long-term value.
The news cycle is moving very quickly over the last two days, despite price being firmly in consolidation. Below, I summarize the major stories of the week so far you have to know about in this market environment.
Morgan Stanley vs UBS
Morgan Stanley aims to be the first wirehouse to launch a Bitcoin ETF, ahead of UBS.
The industry is in a waiting game, with banks observing each other before making a move.
UBS has a set timeline for introducing Bitcoin ETFs.
Morgan Stanley is reportedly vying to outpace UBS to become the first wirehouse to offer spot Bitcoin exchange-traded funds (ETFs) in the US. Andrew, @AP_Abacus on X, citing internal Morgan Stanley notes, suggested that the bank might soon announce its entry into Bitcoin ETFs. This development is part of a broader "race" among global banks to incorporate Bitcoin ETFs into their offerings. Eric Balchunas, a Bloomberg ETF expert, noted that both Morgan Stanley and UBS are yet to add Bitcoin ETFs, with the industry in a "holding pattern" waiting for one to make the first move.
Andrew responded, “UBS already approved in PWM (>$10MM) but must be marked ‘unsolicited’. Technically on the platform already. These posts are about full approval across entire platform and advisors allowed to solicit inclusion in client portfolios.”
Despite these advancements, some banks remain skeptical about Bitcoin as an investment class, with Goldman Sachs expressing doubts about its viability. They will be left behind.
A UBS spokesperson reached out to Bitcoin Magazine for comment, stating that “UBS has no plans to change the conditions for offering spot bitcoin ETFs to clients,” and that the above “social media reports regarding UBS are not accurate.”
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