As a seasoned crypto investor with over a decade of experience navigating the digital asset market, I find the recent institutional interest in Bitcoin ETFs quite encouraging. Having witnessed numerous price fluctuations and market cycles, I can attest that the resilience shown by these institutional investors during volatilities is indeed commendable.
In the second quarter of 2024, about two-thirds of institutional investors either kept or boosted their Bitcoin investments via US-based spot exchange-traded funds (ETFs), as indicated by Bitwise. Data from SEC Form 13F filings revealed that 44% of asset managers increased their Bitcoin ETF holdings, while another 22% chose to keep their existing positions steady.
As an analyst, I observed a significant trend among a subset of investors who reduced their involvement in our investments. Specifically, approximately 21% chose to reduce their holdings, while another 13% decided to fully exit the market. Interestingly, these figures align with those typically seen in other Exchange-Traded Funds (ETFs), as pointed out by Bitwise’s Chief Investment Officer, Matt Hougan. In his words, this is a “pretty good result,” considering the current market dynamics.
Regardless of a 14% or 5% decrease in Bitcoin’s value over the past three months, the interest in Bitcoin ETFs among institutions did not seem to diminish. This is according to Hougan’s observation, as he noted that the number of holder/ETF pairs grew from 1,479 in Q1 to 1,924 in Q2, marking a significant 30% increase. He attributed this growth to institutional investors who tend not to be swayed by market volatilities.
It was observed by Hougan that prominent hedge funds like Millennium, Schonfeld, Boothbay, and Capula, along with various financial advisors, family offices, and other institutional investors, hold Exchange-Traded Funds (ETFs).
On August 14th, I learned from a 13F filing that Morgan Stanley owns over 5.5 million shares of BlackRock’s iShares Bitcoin Trust, valued at approximately $188 million, making them one of the top five shareholders in this trust. Additionally, Goldman Sachs revealed they have invested close to $238 million in IBIT and other spot Bitcoin ETFs. As a crypto investor, it’s exciting to see such prominent financial institutions investing heavily in digital assets.
It’s encouraging to see that despite market fluctuations, large-scale investors continue to invest in Bitcoin ETFs. Furthermore, it is anticipated that other financial institutions like wealth managers and pension funds will likely do the same in the future.
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2024-08-15 11:02