tl;dr
Since their launch in the US in January 2024, spot Bitcoin exchange-traded funds (ETFs) have attracted significant institutional investor interest. More than 1,000 institutional investors have embraced Bitcoin ETFs within just two 13F filing periods, reflecting a growing and sustained interest in th...
Since their launch in the US in January 2024, spot Bitcoin exchange-traded funds (ETFs) have attracted significant institutional investor interest. More than 1,000 institutional investors have embraced Bitcoin ETFs within just two 13F filing periods, reflecting a growing and sustained interest in these investment vehicles.
BlackRock's iShares Bitcoin Trust (IBIT) has 661 institutional holders, with 20% of its shares held by institutions and large advisors. Additionally, 60% of top US hedge funds now hold Bitcoin ETFs, signaling a substantial increase from earlier in the year. Despite these gains, US Bitcoin ETFs have experienced a streak of daily net outflows, reflecting broader market risk aversion.
These ETFs allow for direct portfolio inclusion of Bitcoin, bypassing the challenges of direct purchase and secure storage. The market’s response has been overwhelmingly positive, with more than 1,000 institutional investors signing on within just two 13F filing periods. The 13F filings, mandatory quarterly disclosures for institutional investment managers, reflect a growing and sustained interest in Bitcoin ETFs.
BlackRock’s iShares Bitcoin Trust (IBIT) is particularly noteworthy. It boasts 661 institutional holders and 20% of its shares held by institutions and large advisors. A significant shift has been observed among top US hedge funds, with 60% of these funds now holding Bitcoin ETFs, up sharply since earlier in the year. Notably, none of these funds sold their stakes during the second quarter; many increased their holdings.
Furthermore, 13 of the top 25 registered investment advisors in the US now report exposure to Bitcoin through these ETFs. Firms such as Cambridge Associates and Hightower Advisors are gradually increasing their investments, signaling a broader institutional trust in Bitcoin’s value.
Following the launch of Bitcoin ETFs, Ethereum ETFs were also introduced, drawing even more traditional investment into the crypto sphere. However, despite these gains, challenges persist. US Bitcoin exchange-traded funds have experienced their longest streak of daily net outflows since their debut, reflecting the broader market’s current risk aversion.
Nevertheless, Balchunas remains positive, highlighting that close to 99% of investors have remained steadfast in the face of these outflows.