Majority of Institutional Bitcoin ETF Holders Increased Their Holdings in Q2

In the second quarter, it was reported that approximately 66% of institutional investors have either maintained or increased their Bitcoin holdings through U.S.-based spot exchange-traded funds (ETFs).

Key Statistics from Q2 Performance

• 44% of asset managers raised their Bitcoin ETF positions.
• 22% maintained their existing positions.
• 21% reduced their holdings.
• 13% exited their positions entirely.

This data, shared by Bitwise’s investment chief, outlines a favorable trend among institutional investors. The results were described as “pretty good,” matching trends seen in other ETFs.

Insights from 13F Filings

According to the 13F filings submitted to the Securities and Exchange Commission, the second quarter of 2024 saw an influx of institutional interest in Bitcoin ETFs, even as the asset’s value faced a decline of 14.5% throughout the quarter. Notably, Bitwise’s CIO commented:

“Institutional investors continued to adopt Bitcoin ETFs in Q2. The trend is intact.”

In addition, there was an increase in the number of holder/ETF pairs, rising from 1,479 in Q1 to 1,924 in Q2—a 30% jump, underscoring sustained interest despite market fluctuations.

Behavior of Institutional Investors

Bitwise’s insights also highlighted that institutional investors are generally less reactive to market volatility compared to retail investors. This resilience in the face of price fluctuations indicates that many institutional players have a long-term outlook:

“If you thought institutional investors would panic at the first sign of volatility, the data suggest otherwise. They’re pretty steady.”

Notable Institutional Players

Investment firms like Millennium, Schonfeld, Boothbay, and Capula are categorized as major players in the ETF space. Furthermore, there is a noticeable presence of advisers, family offices, and select institutions participating:

“ETFs are a big tent that attracts a wide variety of investors. It’s kind of great to see Millennium nestled up against the State of Wisconsin in these ETF filings. Over time, I’d like to see wealth managers and pensions account for a growing share.”

Recent Holdings Report

In a recent filing on August 14, Morgan Stanley disclosed ownership of over 5.5 million shares in BlackRock’s iShares Bitcoin Trust as of June 30, with a total valuation reaching $188 million. This positions Morgan Stanley as one of the top five fundholders.

Similarly, Goldman Sachs reported substantial exposure to more than $238 million in various spot Bitcoin ETFs, reinforcing the notable trend of institutional investment in this asset class.