According to previous statistics from Bitcoin Treasuries, among the 4000 listed companies on the NYSE, 11 NYSE-listed companies already hold Bitcoin, with a total of about 592,806. Subsequently this data continues to grow. Among these companies holding Bitcoin, funds such as Grayscale and Coinshare are equivalent to custodians.
Although the interest of more institutions in Bitcoin will make most people think that this is a positive positive sign, a recent Longhash report pointed out that “from the short to medium term, the positive factors far outweigh the negative factors. But in the next In a decade or so, if Bitcoin eventually develops into a global currency on top of the store of value, it may bring certain security risks.”
Nowadays, public institutions in the U.S. (Note: In U.S. law, whether the institution is a public institution or a private institution determines the degree of restriction on the civil rights requirements that the country must comply with.) Bitcoin owned by it accounts for 5% of its market value. In the middle, MicroStrategy has the largest proportion.
Another high-profile company Grayscale Capital is also increasing its cryptocurrency holdings. According to the data disclosed by Grayscale officials on November 6, its total holdings exceeded US$9 billion. The Bitcoin Trust holdings are valued at US$7.648 billion, and the Ethereum Trust holdings are worth US$1.104 billion. Grayscale’s total asset management scale has increased by more than 200 times since December 31, 2014.
Due to the growing demand from institutional investors, CME Group’s trading volume has also seen a significant increase recently. The open bitcoin futures shown in the figure below reflect the institutional interest in bitcoin investment.
The market largely regards this relatively new institutional interest as good news. The market itself has rebounded driven by news and buying pressure. Bitcoin has risen by 22.8% so far this month.
However, there may also be some potential problems.
The first problem is that as the price of bitcoin rises, the dollar value of bitcoin held by institutions will also rise. If Bitcoin is really undervalued as some proponents have said, then a sharp price appreciation may mean that for ordinary investors, the supply of Bitcoin has been diluted.
Another thing to consider is the clichéd regulatory issue. If Bitcoin is accepted as a currency and central banks see it as a threat to legal tender, there may be a potential risk of forfeiture.
As Theta Seek said on Twitter, these Bitcoin bonds held by listed companies can easily be seized by the government. However, although his remarks have sparked some speculation, there are currently no clear regulations to determine how the government will treat cryptocurrencies.
How to view Bitcoin will indeed play an important role in the way the government treats Bitcoin. If Bitcoin is seen as a safer haven asset, then perhaps the government is unlikely to take special regulatory actions against Bitcoin.
