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Institutional Spot Bitcoin ETF Holdings Soared 66% in Q2

Institutional investors doubled down on their spot Bitcoin ETF positions in Q2, defying market volatility.

Avatar image of Lucky Ebosele Lucky Ebosele•August 15, 2024
Spot Bitcoin ETF

According to 13F filings reviewed by Bitwise’s chief investment officer Matt Hougan, around 66% of institutional investors either increased or held their US spot Bitcoin ETF positions during the second quarter (Q2) of 2024.

Defying Market Volatility

Specifically, 44% of the institutions increased their Bitcoin ETF positions during the quarter, while 22% held steady. However, 21% decreased their holdings, while 13% exited entirely.

Hougan described this data as “pretty good” compared to other ETFs. He also described institutional investors as diamond hands who do not panic sell like retail investors during high market volatility.

“If you thought institutional investors would panic at the first sign of volatility, the data suggest otherwise. They’re pretty steady,” he said on X.

Notably, the price of BTC dropped by nearly 15% during the second quarter that ran from April to June 2024.

Hougan revealed that holder/ETF pairs jumped 30% from 1,479 in Q1 to 1,924 in Q2, indicating a growing appetite among institutional investors for BTC exposure.

Top Holders 

The Bitwise executive also pointed out that the top holders of US spot Bitcoin ETFs for Q2 are mostly hedge funds, which include Millennium, Schonfeld, Boothbay, and Capula. However, he mentioned that the list also includes many advisors, family offices, and select institutional investors.

“ETFs are a big tent that attract a wide variety of investors. It’s kind of great to see Millennium nestled up against the State of Wisconsin in these ETF filings. Over time, I’d like to see wealth managers and pensions account for a growing share,” he concluded.

In a 13F filing with the Securities and Exchange Commission (SEC) on August 13, Investment banking firm Goldman Sachs revealed $418 million exposure in spot Bitcoin ETFs. The filing showed that the banking giant holds this investment across seven ETFs.

Morgan Stanley also revealed in its Form 13F filing that it held $190 million worth of spot Bitcoin ETFs as of the end of Q2.

Lucky Ebosele

Lucky Ebosele is an avid writer covering cryptocurrencies and blockchain tech since 2021. He is constantly researching the latest trends and developments in the space. Away from crypto, he loves everything football.