Financial Institutions Increasing Bitcoin ETF Holdings 📈
A rising number of institutional investors are expanding their Bitcoin holdings through U.S.-based spot exchange-traded funds (ETFs), as per recent data from Bitwise.
Institutional Investors’ Faith in Bitcoin ETFs Continues
- About 66% of institutional investors either maintained or increased their Bitcoin ETF positions in the second quarter of 2024.
- Out of the asset managers analyzed, 44% grew their Bitcoin ETF holdings, while 22% kept them steady.
- Only 21% of institutional investors reduced their positions, and a smaller 13% exited completely.
Positive Trend for Bitcoin ETF Retention 📊
Bitwise’s Chief Investment Officer, Matt Hougan, sees the retention and growth in Bitcoin ETF holdings as a positive trend, comparable to other ETFs.
- Hougan highlighted the resilience of institutional investors despite a 14.5% decline in Bitcoin’s value.
- The number of holder/ETF pairs increased by 30% from Q1 to Q2.
- This growth shows institutional investors’ steady approach even during market volatility.
Institutional Players in Bitcoin ETFs
Hedge funds like Millennium, Schonfeld, Boothbay, and Capula are among the major ETF holders, alongside various advisers, family offices, and other institutional players.
Growing Interest in Digital Asset Products 🚀
Recently, the digital asset market observed a significant rebound with investment products attracting $176 million in inflows after a period of market correction.
- Ethereum saw the most significant inflows, with $155 million last week and $862 million year-to-date, its highest investment level since 2021.
- The increased confidence in Ethereum is attributed to the launch of U.S. spot-based ETFs.
- Bitcoin had a mixed week with initial outflows but ended with $13 million in inflows, while short Bitcoin ETPs experienced substantial outflows.
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