The increasing popularity of passive investments has been reshaping equity markets, with stocks that have gained passive ownership significantly outperforming those that have lost it over the past three years. Bloomberg Intelligence data shows that US stocks with rising passive ownership returned up to 224.8%, while those losing passive ownership fell by 41.4%.
Similar trends are emerging in the cryptocurrency market, particularly for Bitcoin. The approval of spot Bitcoin ETF listings in January 2024 has led to a significant increase in institutional capital pouring into these funds. US spot Bitcoin ETFs have accumulated approximately $58.4 billion in cumulative net inflows as of late April, with BlackRock's IBIT carrying around $61.9 billion in net assets.
The growing popularity of Bitcoin ETFs is attributed to the increasing accessibility and standardization of investing in cryptocurrencies. The wrapper investment allows investors to own Bitcoin without directly trading and holding it, making it more appealing to institutional investors. The allocation math behind these investments suggests that Bitcoin may reach a price range of $88,000-$105,000 over the summer.