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▲ Bitcoin (BTC)
At a moment when Bitcoin (Bitcoin, BTC) plummeted 52% from its all-time high and $6.35 billion flowed out of US Bitcoin spot ETFs over seven weeks, Wall Street began creating products that automatically buy Bitcoin with dividends. A testing ground has opened to reveal the true nature of this structural change: whether it's a new buying channel leading to the $47.6 trillion US retirement savings market, or a Wall Street product factory layering fees on top of Bitcoin.
Louis Raskin, host of the crypto-focused YouTube channel Coin Bureau, analyzed in a video uploaded on July 6 (local time) that despite Bitcoin's approximately 52% drop from its all-time high of $124,720 to around $59,500, major financial institutions are building long-term Bitcoin buying infrastructure. The 14-day Relative Strength Index (RSI) recorded 31, the Crypto Fear & Greed Index recorded 13, and the total assets of Bitcoin spot ETFs decreased from approximately $170 billion at their peak to around $73 billion. Raskin noted that while individual investors are selling in fear, major financial institutions are creating “permanent Bitcoin buying infrastructure.”
Franklin Templeton applied for two ETFs on June 18 that would invest US stock dividends into increasing Bitcoin exposure. The broad equity product starts with a 95% stock and 5% Bitcoin allocation, based on approximately 500 large-cap US stocks, with Bitcoin exposure limited to a maximum of 20%. If the Bitcoin allocation increases, it is adjusted quarterly towards approximately 4.5%, utilizing Bitcoin spot ETFs like EZBC, CME futures, and listed options. Raskin explained that this structure links stock dividends to Bitcoin accumulation without the need for exchange sign-ups, personal wallets, or seed phrase management.
BlackRock launched a Bitcoin Premium Income ETF on June 16, holding Bitcoin and iBIT while selling call options on approximately 25-35% of its assets. Its target annualized return is 15-25%, its target for reflecting Bitcoin price movements is approximately 70%, and its fee is 0.65%. While Franklin Templeton targeted automatic accumulation demand, BlackRock aimed at investors seeking monthly income. With the US Securities and Exchange Commission (SEC) approving general listing standards for cryptocurrency ETPs in September 2025, the individual review process, which previously took up to 240 days, has been shortened to approximately 75 days for eligible products. Raskin diagnosed that Wall Street has begun repackaging Bitcoin into growth, income, and dividend-type products, tailored for different investor profiles.
The core of the automatic buying structure is recurring demand, regardless of investor sentiment. The underlying index for Franklin Templeton's products yields an annual dividend of approximately 1.05%, and Raskin explained that about 1% of the fund's assets could be mechanically used each year to increase Bitcoin exposure. Ryan Scholer, featured in the video, described this structure as a “programmed dollar-cost averaging tool.” US retirement assets total approximately $47.6 trillion, with stock-centric Individual Retirement Accounts (IRAs) and 401(k) assets alone accounting for about $7.5 trillion. 1% of total retirement assets amounts to approximately $476 billion, while 5% is about $2.4 trillion. However, a counterargument was raised that fund management fees, underlying Bitcoin product costs, and transaction/option costs could overlap, and the structure, which buys solely based on dividend generation whether Bitcoin is at $59,000 or $124,720, lacks a price judgment function.
Raskin presented key verification indicators for after September: the size of assets under management for new products, whether the 7-week consecutive net outflow from Bitcoin spot ETFs ends, a reversal in the Coinbase Premium Index which recorded negative for 46 consecutive days, and the US interest rate environment. He explained that with the federal funds rate at 3.63%, US 10-year Treasury yield at 4.38%, and Personal Consumption Expenditures (PCE) inflation at 4.1%, bonds could compete with Bitcoin for funds. The increase in actual assets under management for the automatic buying products launched by Wall Street in a bear market was presented as the criterion to determine the success or failure of the institutionalization of Bitcoin and the debate over fee-based products.
[Article Key Summary]
-Franklin Templeton applied for two ETFs that automatically invest US stock dividends to increase Bitcoin exposure.
-US retirement assets total approximately $47.6 trillion, and even applying just 1% of the total amounts to about $476 billion.
-Raskin presented the assets under management of new products after September, Bitcoin spot ETF fund flows, and the Coinbase Premium Index as key verification indicators.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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