Institutional Bitcoin ETF Investment Expected to Rise in Coming Years, Report Shows

The price of Bitcoin (BTC) fell 12% in the second quarter, but that didn't stop institutional investors from significantly increasing their investments in BTC ETFs, according to a report released by asset manager Bitwise on Monday.

“The most pressing question in the [cryptocurrency sector] today is whether institutions and professional investors will commit to cryptocurrencies on a large scale,” according to Matt Haugan, chief investment officer at Bitwise.

The report highlights that the number of institutional investors holding Bitcoin ETFs grew 14% from the first to the second quarter, increasing from 965 to 1,100. The share of these investors in the total assets under management (AUM) of Bitcoin ETFs also increased from 18.74% to 21.15%. As of the end of the quarter, institutions held $11 billion in BTC ETFs.

“This is an encouraging sign. If institutions are willing to buy Bitcoin during volatile periods, imagine the potential during a bull market,” Hogan noted.

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Bitwise also addressed criticism that Bitcoin ETFs are primarily owned by retail investors, calling that claim unfounded. The report highlighted that institutions have adopted these ETFs “at the fastest rate of any ETF in history.”

ETFs typically gain popularity gradually, but Bitwise predicts that inflows into Bitcoin ETFs will be greater in 2025 than in 2024, and even greater in 2026.

Alexander Stefanov