Fintech Firms Boost Bitcoin Holdings Amid Market Pause

Fintech firms and investment funds are increasingly acquiring Bitcoin, even as the broader crypto market experiences a temporary pause in its bullish momentum. This trend suggests a potential foundation for a new high in the crypto market. Méliuz, a publicly listed Brazilian fintech firm, recently announced the purchase of 274.52 BTC, bringing its total holdings to 320.2 BTC, valued at over $33.3 million. Similarly, A1 Abraaj Restaurants Group, listed in Bahrain, disclosed an initial purchase of 5 BTC with plans to significantly scale its holdings.

Eric Trump, the second-eldest son of Donald Trump, highlighted the widespread interest in Bitcoin during the CoinDesk's Consensus Toronto event, noting that sovereign wealth funds, wealthy families, and major companies are all actively acquiring the cryptocurrency. This global adoption trend is expected to support a continued bull market, despite recent concerns such as the crumbling bipartisan support for the GENUIS Act aimed at creating a national regulatory framework for payment stablecoins and the Coinbase data breach.

Quinn Thompson, chief investment officer at Lekker Capital, expressed concerns about the stablecoin bill's obstruction and the potential regulatory capture at the industry's expense. Additionally, Coinbase's shares dropped 7% as the exchange confirmed an ongoing SEC investigation into potentially inflated user metrics from 2021. These developments, along with slowed inflows into U.S.-listed spot BTC exchange-traded funds (ETFs) and large sell orders around $105,000, indicate potential short-term price volatility. FTX creditors are set to receive over $5 billion in distributions starting May 30, as part of the second phase of the bankrupt exchange’s court-approved recovery plan.

Despite these challenges, the overall sentiment remains bullish, with funding rates in perpetual futures tied to major coins remaining below an annualized 10%. This suggests that positioning is bullish but not overcrowded. In the options market, front-end skews have flipped bearish for BTC and ETH, with major flows featuring buying BTC puts financed by selling calls. This indicates a cautious approach among investors, who are preparing for potential downside risks while maintaining a long-term bullish outlook.