Bitcoin ETFs bring in a new investor who bucks the ‘HODL' culture and rebalances as bitcoin soars

The cryptocurrency has become increasingly institutionalized in recent years and since the launch of exchange traded funds this year that track bitcoin's price, that trend is expected to increase – especially as different wirehouses, brokerages,"You have so many people in this community who are just diamond-handed holders," Donald Marron, director of economic policy initiatives at Urban Institute, said this week at the 2024 Vision conference in Austin, Texas.

"If you have people who are actually doing what I view as traditional asset allocation, they're going to face a question every quarter, every month, every year about whether they rebalance," he added."From a risk management point of view, rebalancing is a good thing. But rebalancing also means that they're going to be sellers along this journey."becomes a seller, according to Julio Moreno, head of research at CryptoQuant.

Sharpe ratios help investors assess the return they get from an investment relative to the amount of risk they take. Rebalancing may help dampen bitcoin's notorious volatility – one of the biggest things keeping many investors away from the asset, according to Michael Allegue, an investment officer at MassMutual.

"As more and more institutional capital comes in, there's potential for volatility dampening as many other firms, us included, are probably going to be rebalancing accounts – they're not going to be purely buy-and-hold," Allegue said.Here’s how Coinbase would benefit from U.S. ether ETFs if approved, according to JMP

Coin Coin Latest News, Coin Coin Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bitcoin dominance risks breaking 18-month uptrend on Ether ETF launchEthereum ETFs may drive Bitcoin’s crypto market cap share down, new BTC price analysis says.
Source: Cointelegraph - 🏆 562. / 51 Read more »

Price analysis 5/30: BTC, ETH, BNB, SOL, XRP, DOGE, TON, SHIB, ADA, AVAXBitcoin’s range-bound action has not stopped investors from snapping up Bitcoin ETFs.
Source: Cointelegraph - 🏆 562. / 51 Read more »

Crucial Negative Ethereum ETF Statement Made by Samson Mow, Here’s His MessageBitcoin maximalist Samson Mow says Bitcoin has no use for Ethereum ETFs
Source: Utoday_en - 🏆 295. / 63 Read more »

Bitcoin ETFs hit new milestone as crypto community awaits price surgeBitcoin (BTC) ETFs worldwide now hold a record 1 million BTC, according to a recent X post by MicroStrategy CEO Michael Saylor.
Source: FXStreetNews - 🏆 14. / 72 Read more »

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin’s momentum poise to propel crypto marketBitcoin (BTC) price consolidates in a symmetrical triangle pattern, showing directional bias.
Source: FXStreetNews - 🏆 14. / 72 Read more »

Japanese Crypto Exchange DMM Bitcoin Hacked: $305M Worth Bitcoin DrainedCrypto Blog
Source: Crypto_Potato - 🏆 568. / 51 Read more »