In the second quarter of 2024, a notable 66% of institutional investors either maintained or increased their positions in Bitcoin through US-based spot exchange-traded funds (ETFs), according to Bitwise. SEC Form 13F filings reveal that 44% of asset managers raised their Bitcoin ETF holdings, while 22% kept their positions steady.
Despite the volatility in the Bitcoin market, which saw a 14.5% drop in value during the quarter, institutional interest in Bitcoin ETFs remained robust. Matt Hougan, Chief Investment Officer at Bitwise, described the results as “a pretty good outcome,” noting that these figures are consistent with trends observed in other ETFs.
The number of institutional holders of Bitcoin ETFs grew significantly from 1,479 in Q1 to 1,924 in Q2, marking a 30% increase. Hougan attributed this rise to the stability and commitment of institutional investors who do not react impulsively to market fluctuations.
Major hedge funds such as Millennium, Schonfeld, Boothbay, and Capula, as well as various advisers, family offices, and other institutions, have continued to invest in Bitcoin ETFs. Notably, Morgan Stanley reported holding over 5.5 million shares of BlackRock’s iShares Bitcoin Trust, valued at $188 million, making it one of the top five fundholders. Goldman Sachs also revealed an investment of over $238 million in IBIT and other spot Bitcoin ETFs.
This sustained institutional interest, despite market volatility, is seen as a positive indicator for the Bitcoin ETF market. It suggests that large investors remain confident in the long-term potential of Bitcoin, and other market participants, such as wealth managers and pension funds, are expected to follow their lead.
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