Share this article
Institutions Are Still Buying Bitcoin ETFs, Bitwise Says
The number of institutional investors holding bitcoin ETFs rose 14% in the second quarter of the year to 1,100, the report said.
Updated Aug 21, 2024, 8:38 a.m. Published Aug 21, 2024, 8:35 a.m.
- The biggest question in crypto at the moment is whether institutional investors will allocate to the asset class in a big way, the report said.
- Bitwise noted that the total number of institutional investors holding bitcoin ETFs rose 14% in the second quarter.
- Bitcoin exchange-traded funds have been adopted by institutions at the fastest rate of any ETF in history, the asset manager said.
Bitcoin's price fell 12% in the second quarter, but this didn't stop institutional investors from significantly increasing their allocation in BTC exchange-traded funds (ETFs), asset manager Bitwise said in a report on Monday.
"The biggest question in crypto right now is whether institutions and professional investors will allocate to crypto in a major way," wrote Bitwise chief investment officer Matt Hougan.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The aggregate number of institutional investors holding bitcoin ETFs in the second quarter rose 14% from the first quarter, to 1,100 from 965, the report noted.
Advertisement
These investors' share of total assets under management (AUM) of bitcoin ETFs also grew to 21.15% from 18.74%, Bitwise said, adding that institutions ended the quarter holding $11 billion in BTC ETFs.
"This is a great sign," Hougan wrote, "if institutions will buy bitcoin when prices are volatile, imagine what could happen in a bull market."
Bitwise noted criticism that bitcoin ETFs are predominantly owned by retail investors, an assertion it says is simply untrue. It observed that these ETFs have been adopted by institutions "at the fastest rate of any ETF in history."
Most ETFs build momentum over time, and bitcoin ETF inflows are expected to be bigger in 2025 than 2024, and larger in 2026 than 2025, the note said.
"The institutions are coming, and they're coming in size," the report added.
Wall Street giant Goldman Sachs (GS) disclosed that it held positions in seven out of the eleven bitcoin ETFs in the U.S., according to a 13F filing earlier this month.
Read more:Goldman Sachs Holds Over $400M in Bitcoin ETFs
More For You
More For You
Bitcoin Jumps to $99K as Spiking Coinbase Premium Points to Strong U.S. Buying
Spot BTC prices were at times $300 pricier on Coinbase relative to Binance, suggesting the rally may be driven by heavy demand from American investors.
What to know:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
- The rally coincided with significant spot BTC price premium on Coinbase.
- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
Top Stories
