A Steady Rise in Institutional Crypto Investment
Bullish, a company focused on institutional investors and publisher of CoinDesk, successfully completed its initial public offering. The IPO values Bullish at more than $5 billion, reflecting Wall Street’s growing acceptance of digital assets.
Strong Backing from Top Financial Institutions
The IPO was spearheaded by prominent financial institutions like JPMorgan and Citigroup. Notable investors in the offering include asset manager BlackRock and Cathie Wood’s investment fund Ark Invest, each expressing interest in acquiring up to $200 million worth of Bullish shares.
Custody Services for Cryptocurrencies
Bullish operates a crypto exchange serving institutional clients and manages approximately $2 billion in cryptocurrency assets, mainly held as bitcoin with smaller amounts in ether and stablecoins. The company has established itself as a leading custodian of crypto assets. Due to regulatory challenges, custody services have been a significant hurdle for the industry. Bullish now offers a Wall Street-approved holding mechanism for banks and asset managers looking to avoid developing their own custodial infrastructure.
Growing Institutional Demand for Crypto ETFs
The demand for institutional crypto exchanges has increased since January 2024 when the Securities and Exchange Commission approved bitcoin ETFs. Nine major players, including BlackRock and Fidelity, have launched funds that quickly gained traction. This trend continued in June with five ether-based ETFs.
The Trump administration has also taken a pro-crypto stance by relaxing regulations that previously prevented banks from holding digital assets. Recently, the administration proposed allowing future retirees to allocate part of their 401(k) savings into crypto and private assets.
Record Inflows into Crypto ETFs
These developments have driven record inflows into both bitcoin and ether ETFs. Ether funds alone saw over $1 billion invested in a single day this week, breaking the previous record of $726.6 million set in July.
Institutional Companies Boosting Crypto Holdings
Public companies are also increasing their crypto holdings. Data from Bitbo Treasuries indicates that ETFs and public-private companies now control more than 13.5% of the total bitcoin supply.
