Institutional Investors Increase Bitcoin ETF Holdings in Q2

During the second quarter, about 66% of institutional investors either maintained or boosted their Bitcoin investments through U.S.-based spot ETFs, as reported by Bitwise.

According to 13F filings with the U.S. Securities and Exchange Commission, 44% of asset managers increased their Bitcoin ETF holdings, 22% maintained their positions, while 21% reduced their stakes, and 13% exited their investments.

Matt Hougan, the chief investment officer at Bitwise, stated that this performance is on par with other ETFs, despite a 14.5% drop in Bitcoin’s value over the quarter.

Form 13F, a mandatory quarterly report for institutional investment managers with over $100 million in assets, revealed that institutional investors remained committed to Bitcoin ETFs.

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Hougan observed that the number of holder/ETF pairs rose to 1,924 in Q2 from 1,479 in Q1, a 30% increase. He noted that institutional investors tend to hold steady during market volatility, unlike retail investors who might panic sell.

Prominent hedge funds like Millennium, Schonfeld, Boothbay, and Capula were significant ETF holders, along with numerous advisers, family offices, and other institutional investors.

Hougan expressed optimism about the growing diversity of investors in ETFs and hoped for an increasing share of wealth managers and pension funds over time.

In recent filings, Morgan Stanley reported holding over 5.5 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) valued at $188 million, making it a top-five fundholder. Goldman Sachs also disclosed investments exceeding $238 million in IBIT and other Bitcoin ETFs.

Alexander Stefanov