Bitcoin’s push toward the $120,000 mark is gathering momentum as institutional demand rises and global policy moves reshape the market’s supply-and-demand dynamics.
Harvard invests $116.6 million in Bitcoin through IBIT
Harvard Management Company has disclosed a $116.6 million position in BlackRock’s IBIT spot Bitcoin ETF, purchasing 1.9 million shares. The allocation elevates Bitcoin to the fifth-largest holding in Harvard’s equity portfolio, behind Microsoft, Amazon, Booking Holdings, and Meta, and follows a period in which the endowment trimmed exposure to several Big Tech names. The move aligns with broad U.S. appetite for spot Bitcoin ETFs, which have drawn more than $54 billion in inflows since launching in early 2024. With liquidity on major exchanges tightening, such institutional allocations can remove additional float from the market and amplify price moves.
El Salvador opens the door to regulated Bitcoin investment banks
El Salvador has approved an Investment Banking Law permitting regulated investment banks—separate from commercial banks—to hold Bitcoin and other digital assets on their balance sheets. These institutions must serve only sophisticated investors, carry a Digital Asset Service Provider license, and meet a minimum $50 million capital requirement. The framework allows firms to operate fully as Bitcoin-focused banks if they choose, a strategy officials say is designed to attract foreign capital and strengthen the nation’s role as a crypto finance hub. Critics caution that the benefits may accrue more to well-capitalized institutions than to everyday Salvadorans. Even so, the licensing and capital standards could help filter for serious participants and reduce operational risk while signaling regulatory clarity to international investors.
Japan’s ETF ambitions pause, but plans are alive
Reports of imminent spot crypto ETF filings in Japan were tempered as SBI Holdings clarified it has not yet submitted applications. The firm reiterated plans to launch crypto-asset-linked investment trusts and ETFs once regulators give the green light, highlighting an intent to participate while the country’s first spot Bitcoin ETF remains on hold. The contrast underscores a divergence in global policy pacing: U.S. spot ETFs continue to attract capital as nations like El Salvador advance crypto-specific banking rules, while Japan moves more cautiously.
Market snapshot
At the time of writing, Bitcoin traded around $118,320, up roughly 4% over the past week. Shrinking exchange liquidity, robust ETF demand, and supportive policy signals in select jurisdictions are contributing to a firmer tone as the market eyes $120,000.
Why it matters
– Institutional validation: A marquee endowment’s allocation reinforces Bitcoin’s growing acceptance within traditional portfolios.
– Structural demand: ETF inflows can sequester coins, tightening tradable supply and potentially increasing price sensitivity to new demand.
– Regulatory divergence: Tailwinds from clear, innovation-friendly rules (El Salvador, U.S. ETF regime) may contrast with slower-moving markets (Japan), influencing where capital flows next.
What to watch
– Net inflows into U.S. spot Bitcoin ETFs and any approval timelines in Japan.
– Implementation details in El Salvador, including licensing activity and the first wave of investment banks entering the regime.
– Exchange liquidity metrics and market depth as price approaches key psychological levels such as $120,000.
Summary
Harvard’s $116.6 million stake in BlackRock’s IBIT, El Salvador’s legalization of Bitcoin-holding investment banks, and Japan’s cautious approach to spot ETFs collectively highlight the maturing but uneven global backdrop for Bitcoin. Combined with tightening exchange liquidity and strong ETF demand, these developments are supporting a positive market tone as Bitcoin edges closer to the $120,000 threshold.