A recent report by Bloomberg revealed that new hedge funds, pension funds, and banks own and continue to pour capital into the successful spot Bitcoin ETF market launched earlier this year in the United States.
701 New Funds Enter Bitcoin ETF Arena
The latest data from Bloomberg indicates that following the recent deadline for filing second-quarter 13F reports with the US Securities and Exchange Commission (SEC), 701 new funds have disclosed their holdings in spot Bitcoin ETFs, pushing the overall count to nearly 1,950 holders.
Buyers in this surging trend include hedge funds like Millennium Management, which have stakes in at least five Bitcoin ETFs. Key players such as Capula Investment Management and Steven Cohen’s Point72 Asset Management have also reported their interest in these ETFs.
The buyers list also encompasses diverse entities, from the State of Wisconsin Investment Board to market makers across global financial hubs like Hong Kong, the Cayman Islands, Canada, and Switzerland.
Despite Bitcoin’s price dip of nearly 13% in the quarter, these spot Bitcoin ETFs have defied expectations, amassing a net inflow of $17 billion this year. BlackRock’s IBIT has emerged as a standout, with assets swelling to $20 billion.
Institutional Winds Of Change
Noelle Acheson, author of the Crypto Is Macro Now newsletter, highlights the growing number of Bitcoin ETF holders as a sign of investor conviction and diligent research.
However, while the approval of spot Ethereum ETFs in July has also seen significant inflows, it’s noteworthy that not all financial advisers can recommend these ETFs to clients.
“This reflects a mix of conviction and investors taking time to ‘do the work,’” Acheson said. “So far, Morgan Stanley is the only one of the large wirehouses whose financial advisers can recommend BTC spot ETF diversification positions. But others will follow, bringing more demand and a longer-term view.”
The increasing institutional adoption extends beyond Bitcoin, as spot Ethereum ETFs have also gained traction. The group of ETH-based ETFs has seen inflows of $1.9 billion, excluding the $2.3 billion in outflows from the Grayscale Ethereum Trust (ETHE), which converted to an ETF last month.
Adam Guren, the founder and chief investment officer of hedge fund Hunting Hill Global Capital, which reported holdings in the IBIT ETF, highlighted the firm’s involvement in the cryptocurrency space since 2016.
Guren noted that one of their trading strategies involves “providing liquidity within the ETF ecosystem,” they anticipate introducing more crypto-related products in the US, including options on Bitcoin and Solana ETFs, which would create further opportunities for their trading strategies.
When writing, the largest cryptocurrency on the market has retraced over 3% in the last few hours, resulting in a trading price of $56,700.
Featured image from DALL-E, chart from TradingView.com
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