Spot Bitcoin ETFs Are the Fastest-Growing ETFs in History: Bitwise CIO

Spot Bitcoin exchange-traded funds (ETFs) are growing faster than any other ETF in history in terms of institutional adoption, inflows, and assets under management (AUM), Bitwise chief investment officer (CIO) Matt Hougan said in a recent tweet thread.

Spot Bitcoin ETFs Attract $17.5B Inflow 

Hougan revealed that Spot Bitcoin ETFs have attracted a remarkable $17.5 billion in net inflows in under seven months compared to the previous record holder, Nasdaq 100 QQQs, which garnered a smaller net inflow of $5 billion in the first year.

The Bitwise CIO, however, pointed out that this performance does not silence bitcoin critics, who believe the adoption is mainly dominated by retail investors rather than institutional investors.

“The record-setting pace hasn’t silenced the critics, however. Their most common complaint is: ‘It’s all retail buying. There are no institutional buyers.’ As proof, they point to 13Fs – the required quarterly disclosures institutions must file showing what they own.”

Indeed, 13F filings for Q2 revealed that institutional investors hold just 21% of current bitcoin ETF AUM against 79% held by retail investors. Despite this, spot Bitcoin ETFs remain the fastest-growing ETFs in institutional adoption, according to Hougan.

Fastest-Growing ETFs in History 

To back up his claim, Hougan used a chart from ETF expert Eric Balchunas to examine the ten fastest-growing ETFs in history (as ranked by the number of institutional holders and total institutional AUM after two quarters on the market).

The data shows that spot Bitcoin ETFs attracted 1,100 holders with $11 billion in institutional AUM compared to others that saw lower adoption and AUM. The only fund that comes close is Nasdaq 100 QQQs, but that was due to the unavailability of 13F data during its first nine quarters into the market. 

“ETFs are wonderful, in that they can be held by institutions and retail investors alike. But don’t let the historic adoption of bitcoin ETFs by retail fool you. They are also gaining institutional traction faster than any other ETF in history,” he said.