
Bitcoin bulls may be encouraged to see that assets at Crypto funds are approaching almost $1 billion of inflows this year according to Bloomberg. This came from a ‘functions for markets’ article written by portfolio and equity specialist Jamie Douglas Coutts. Some of this extra involvement means that the GrayScale Trust has lost its premium appeal as alternative ways of investing in cryptocurrencies have emerged. GrayScale Trust is the world’s largest bitcoin fund and the first investment vehicle to report to SEC.
Institutional investment still has plenty more room to go
A JP Morgan survey from last week revealed that 78% of institutional investors are not planning to invest in cryptocurrencies. However, over half of the respondents believe that crypto is here to stay. The respondents were representing around 1500 different institutions. Only 21% of those surveyed thought Bitcoin was a ‘temporary fad’. As more and more Bitcoin ETF’s become available that will mean that retail investors will have more and more options to express their interest in cryptos. Also, as long as companies like PayPal and Tesla keep showing their interest and involvement dip buyers can still be expected. This recent rally in Bitcoin has more sense of staying power about it. However, in the markets, no investment is ever completed certain.
One key area that medium-term dip buyers will be looking at is any retest of the 100 EMA on the daily chart. That is around the $40,000 mark and stops can be placed below the 200EMA. Any break of the 200EMA and the next major support would be at $20,000.