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US spot Bitcoin ETF products continue to show resilience with a growing and sustainable institutional presence.
Recent data indicates that two-thirds of institutional investors held or increased their positions with BTC ETFs in Q2 2024. On the other hand, about 21% of institutional investors recorded a decline in their ETF positions, and 13% made a complete exit.
The overall trend reflects a better trend for spot BTC ETFs than other ETFs and highlights institutional confidence in the products.
Institutional Investors’ Interest in Spot Bitcoin ETFs Grew in Q2
Matt Hougan, Bitwise’s chief investment officer, reviewed Q2 Bitcoin 13-F filings and disclosed the growing confidence of institutional investors in spot Bitcoin ETFs, highlighting the trend for the funds in the second quarter of 2024.
A few initial thoughts after reviewing the Q2 Bitcoin 13-F filings:
1) The Institutions Are Still Coming; Total Filings Are Up: I count 1,924 holder<>ETF pairs across all 10 ETFs, up from 1,479 in Q1. That’s a 30% increase; not bad considering prices fell in Q2.
Of course, this…
— Matt Hougan (@Matt_Hougan) August 14, 2024
According to the data, 66% of institutional investors increased or maintained their Bitcoin ETF positions in Q2 2024. This trend indicates robust institutional confidence in the funds amid the crypto market volatility within the period.
The data showed that 44% of the investors increased their BTC ETF holdings with more accumulations, while 22% maintained steady BTC ETF positions.
However, about 21% of institutional investors decreased their Bitcoin ETF holdings, and 13% completely disposed of their funds within the reviewed period.
For clarity, the 13-F filing with the Securities and Exchange Commission (SEC) is a mandatory quarterly report from all institutional investment managers that controls a minimum of $100 million in assets under management (AUM).
Hougan described the report as a display of unwavering confidence from institutional investors. He noted that these investors’ interest in Bitcoin ETFs grew in Q2 amid market volatility.
Hougan stated: “If you thought institutional investors would panic at the first at the first sign of volatility, the data suggest otherwise. They’re pretty steady.”
Notably, the primary crypto asset, Bitcoin, recorded a 5% decline in value in the quarter of the year.
Also, Hougan highlighted a 30% increase in the holder/ETF pair compared to the previous quarter. The index grew to 1,924 across all the 11 ETFs in Q2 from the past 1,479 in Q1, 2024.
Top Hedge Funds and Investment Banks Adopt Bitcoin ETF Products
Prominent hedge funds and investment banks are among the foundational institutional investors of Bitcoin ETFs, boosting its record.
According to Bitwise executive Hougan, large hedge funds such as Millennium, Boothbay, Schonfeld, and Capula are among the top ETF holders. Also, some family officers, advisers, and selective institutional investors are not excluded from the BTC ETF market.
Similarly, investment entities such as Morgan Stanley and Goldman Sachs have significant holdings in Bitcoin ETFs.
Morgan Stanley ranks as the fifth-largest holder of BlackRock’s IBIT shares. The investment bank indicated having over 5.5 million IBIT in its portfolio as of June 30, according to its 13F filing on August 14. Moreover, Morgan Stanley’s ETF holding was worth about $188 million at the end of Q2.
Also, Goldman Sachs disclosed that it held IBIT shares worth about $238 million in Q2. The company also owns shares of other BTC ETFs, including Fidelity’s FBTC and Invesco Galaxy’s BTCO.
According to data from Farside Investors, US spot Bitcoin ETFs’ total assets amount to $17.3 billion as of August 14.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
