Bitcoin ETFs & Institutional Adoption

[irhact]

Additionally, how are institutions accumulating Bitcoin for long-term holdings?

Just like every other person does, they buy Bitcoin and get it stored on trusted wallets mostly hardware and Hold for awhile and allow it make them some good profit. They sometimes do have DCA plans for the acquisition of Bitcoin but it's mostly on large scale of purchase, even while doing DCA. Institutions do almost similarl things done at the small scale with differences of the amount of information they are privilege to have at almost everytime. They do all of this acquisition under supervision and that's a difference with what is obtainable with retail investors.

Some exchanges and other platforms we buy Bitcoin from are actually institutions and some of them get their assets from these institutions who are getting their assets from miners sometimes and probably other sources.  These institutions includes banks, government and big trading firms.

[Danica22]

Bitcoin ETFs has made the sceptical people see bitcoin as a good asset to invest in because they have made bitcoin look like fiat where you buy and keep it in the custody of a third party. It's increasing the adoption rate but I must tell you that these investors buying bitcoin from ETFs are not real holders because they are not buying real bitcoin.

They want to get profit with Bitcoin price growth and that's it but they don't buy bitcoin. In fact they purchase shares of Bitcoin Spot ETFs and these Bitcoin Spot ETF companies even don't be self custodians but the custodians are mostly Coinbase.

By signing contracts with Coinbase as custodians of their customers' bitcoins, it makes risk to their customers if anything wrong happens with Coinbase. Any institutional investors who already chose or are considering to invest through Bitcoin Spot ETFs and mandatory trust on Coinbase must know about this fact and this risk. They have to trust Bitcoin Spot ETF companies and also Coinbase.

I know the risks of investing in bitcoin through a 3rd party and this also goes against the decentralized concept of bitcoin. But we don't need to complicate or exaggerate that investing in bitcoin ETFs is risky, unsafe...

Blackrock has been an investment management firm since 1983 and is managing over $11 trillion, a figure more than five times larger than bitcoin's market capitalization. Meanwhile, Coinbase is an exchange founded in 2012 and both are regulated and supported by the SEC or government.

It can be seen that they are the largest units in the industry and have made great contributions to the market. If they have problems, the market will hardly be able to stand firm. So there is nothing too bad or unsafe about trusting them.

To be fair, they all have their pros and cons so it cannot be said that investing through ETFs is risky and self-custody is completely safe.