The latest data from the 13F Form filings show that institutional investors have further increased their investment in Bitcoin exchange-traded funds (ETFs) and now own 20% of all US-traded spot Bitcoin ETFs. This increase can be attributed to embracing of bitcoin as a major investment instrument among big fund managers.
As noted by the CryptoQuant CEO Ki Young Ju, these filings reveal that institutional investors hold over 193,000 BTC through these Bitcoin ETFs by October 18th, 2024. This figure illustrates how mainstream institutional investors such as Millenium Management, with $70 billion, Jane Street, which is a $438 billion trading firm and the world’s largest financial firm, Goldman Sachs, with $2.93 trillion, have started to make their investments in crypto space.
BlackRock’s iShares Bitcoin Trust Leads with Most Bitcoin
However, the largest number of bitcoins is held through the BlackRock Institutional Trust Company of New York iShares Bitcoin Trust ETF (IBIT) where institutions hold over 71,000 bitcoins . Although it holds the most institutional fund, the institutional ownership ratio of 18.38% is below average to other ETFs.
However, Grayscale’s GBTC trails just behind with 44,707.89 BTC the number of BTC owned by institutional investors. This puts GBTC at 20.25% institutional ownership, making it one of the most popular ETFs for Large Investors.
Coming to the first for institutional ownership is the ARK 21Shares ETF (ARKB), institutions being its largest shareholder group with an ownership of 32.8% of its shares, which represents 17,166 BTCs approximately. Thus, it means that even though ARKB might not necessarily be holding the largest number of BTC, it has more institutions interested in the cryptocurrency.
On the other hand, Grayscale Bitcoin Mini Trust is the least reliant on institutional investors, averaging just 1.52% institutional ownership. This ETF is still relatively small in the context of institutions, proving that not all bitcoin ETFs are the same from the perspectives of large investors.
ETF Flows and Bitcoin’s Price Surge
A recent report from VanEck indicated that there is a straight line between the new Bitcoin ETFs that have been formed and increased Bitcoin demand in the past months. This institutional uptake is thought to be one of the drivers for the November 2021 11% monthly rise for Bitcoin, the cryptocurrency reaching a peak of $67,478 that same month.
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To support his arguments, VanEck cited that the flow of spot Bitcoin ETFs in the US reached as high as $21.193 billion in ytd flows on October 18, 2024, according to data from Farside Investors. ETF inflows into the Bitcoin market have again increased sharply, thus raising optimism that institutional uptake shall be the main driver of demand for the BTC asset.
A senior analyst at VanEck said, ‘This can build an unrelenting wave of accumulated mass of capital flowing into the Bitcoin ETFs from institutional participants who have long term outlook towards the financial assets.’
Fidelity’s FBTC Ranks Third in Popularity Among Institutions
The third biggest share of institutions interested in Bitcoin ETFs is Fidelity’s FBTC, through which institutional investors have invested 44,623.23 BTC. Making it one of the most attractive ETFs for institutional investors, Institutional investors own 24.14% of the shares in FBTC.
However, not all ETFs have been similarly attracted by institutionals. The CoinShares Valkyrie ETF (BRRR) has the least amount of Bitcoin, where institutions are buying only 451.26 BTC in this product. This contrast clearly shows that while some of the ETFs act as a channel for institutional participation others continue to act as pariahs.
Conclusion: HODL! – Bitcoin ETFs Investment by Institutions on the Rise
With the current account of holding 20% of all US-traded spot Bitcoin ETFs, institutions cannot be ignored in the market. Institutional capital stakes are going to persistently impact Bitcoin, given that giants such as BlackRock, Fidelity, and ARK are key players at the table.
Bitcoin of totaled ETFs also fluctuates depending on the product, but given the sustained inflow of institutional money, even more price appreciation seems possible as the year 2024 advances. As more corporate fund managers and institutional investors show their interest in such ETFs, this pushes the debate on Bitcoin for long-term value for its bull-bumpy run and, hence, a growth factor.
We also see that institutional actors continue to enter the crypto market: as more companies do so, it will be important to observe the implications for the crypto market and the development of cryptocurrency. Keep following TheBITJournal and keep an eye on Bitcoin ETFs
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