A growing number of institutional investors are bolstering their Bitcoin holdings through U.S.-based spot exchange-traded funds (ETFs), according to recent data from Bitwise.
In the second quarter of 2024, approximately 66% of these investors either maintained or increased their Bitcoin ETF positions.
Bitwise’s analysis of 13F filings submitted to the Securities and Exchange Commission (SEC) reveals that 44% of asset managers expanded their Bitcoin ETF holdings during the quarter, while 22% chose to hold steady.
Meanwhile, only 21% of institutional investors reduced their positions, and a smaller 13% decided to exit entirely.
Bitcoin ETF Retention Trend “Intact”
Matt Hougan, Bitwise’s Chief Investment Officer, described the retention and growth in Bitcoin ETF holdings as a positive sign, comparable to trends observed with other ETFs.
“The trend is intact,” Hougan stated in an X post on August 15, highlighting the resilience of institutional investors despite a 14.5% decline in Bitcoin’s value over the quarter.
Hougan noted a significant increase in the number of holder/ETF pairs, which rose from 1,479 in Q1 to 1,924 in Q2, marking a 30% surge.
The uptick occurred even as Bitcoin prices fell, showcasing the steady hand of institutional investors who, unlike retail investors, are less likely to panic sell during periods of market volatility.
“Data suggest that institutional investors are not quick to flee at the first sign of volatility,” Hougan commented.
He also pointed out that hedge funds such as Millennium, Schonfeld, Boothbay, and Capula were among the major ETF holders, alongside a diverse array of advisers, family offices, and other institutional players.
In the latest 13F filings, investment bank Morgan Stanley reported owning over 5.5 million shares of BlackRock’s iShares Bitcoin Trust, valued at $188 million as of June 30, positioning it as a top-five holder.
Goldman Sachs also disclosed significant exposure, holding more than $238 million in shares of various spot Bitcoin ETFs, including the IBIT.
Digital Asset Products See Rebound
As reported, the digital asset market saw a significant rebound last week, with investment products drawing in $176 million in inflows as investors capitalized on recent price dips.
The influx comes after a period of market correction that had slashed the total Assets under Management (AuM) in these products by over $20 billion
During the week, Ethereum emerged as the primary beneficiary of the market’s rebound, attracting $155 million in inflows last week.
This brings Ethereum’s year-to-date inflows to $862 million, marking the highest level of investment since 2021.
The strong performance is largely attributed to the recent launch of U.S. spot-based ETFs, which have bolstered investor confidence in Ethereum.
Bitcoin (BTC), on the other hand, had a mixed week.
The cryptocurrency started with outflows but managed to reverse this trend in the latter part of the week, ultimately recording $13 million in inflows.
Meanwhile, short Bitcoin ETPs saw substantial outflows, with $16 million (or 23% of their AuM) being withdrawn.
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