Bitrabo Editorial
Bloomberg’s recent report uncovered a surge in ownership of the spot Bitcoin ETF market by new hedge funds, pension funds, and banks, demonstrating continued capital inflow into the market which was launched earlier this year in the US.
701 Fresh Entrants in Bitcoin ETF Space
Latest data from Bloomberg post the deadline for second-quarter 13F reports filing with the SEC reveals that 701 new funds have disclosed their holdings in spot Bitcoin ETFs, bringing the total count to almost 1,950 holders.
Hedge funds like Millennium Management have invested in at least five Bitcoin ETFs, along with other major players like Capula Investment Management and Steven Cohen’s Point72 Asset Management also showing interest.
The list of buyers spans various entities ranging from the State of Wisconsin Investment Board to market makers in global financial hubs like Hong Kong, the Cayman Islands, Canada, and Switzerland.
Despite a nearly 13% price drop in Bitcoin in the quarter, these spot Bitcoin ETFs have seen strong performance, amassing a net inflow of $17 billion this year. BlackRock’s IBIT is a standout performer with assets growing to $20 billion.
Institutional Adoption Trends
Noelle Acheson, author of the Crypto Is Macro Now newsletter, views the increasing number of Bitcoin ETF holders as a reflection of investor confidence and thorough research.
However, while the approval of spot Ethereum ETFs in July has attracted significant inflows, not all financial advisers can recommend these ETFs to clients.
Acheson mentioned, “This shows a mix of conviction and investors doing their due diligence. Morgan Stanley is currently the only large wirehouse whose financial advisers can suggest BTC spot ETF diversification positions, but others are expected to follow suit.”
Institutional adoption is not limited to Bitcoin, as Ethereum-based ETFs have also gained momentum, witnessing inflows of $1.9 billion, excluding the $2.3 billion outflows from the Grayscale Ethereum Trust (ETHE), which converted to an ETF recently.
Adam Guren, founder and chief investment officer of hedge fund Hunting Hill Global Capital, highlighted the firm’s engagement in the cryptocurrency space since 2016.
Guren mentioned that one of their trading strategies focuses on “providing liquidity within the ETF ecosystem” and shared plans to introduce more crypto-related products in the US, including Bitcoin and Solana ETF options, to expand their trading opportunities.
Bitcoin, the leading cryptocurrency, has retraced over 3% in the last few hours, currently trading at $56,700.
Featured image from DALL-E, chart from TradingView.com