Anika Begay
A recent Bloomberg report revealed that new hedge funds, pension funds and banks are owning and continuing to invest capital in the Bitcoin ETF spot market, which was successfully launched earlier this year in the United States.
701 New Funds Enter the Bitcoin ETF Arena
The last one data Following the recent deadline for filing second-quarter 13F reports with the U.S. Securities and Exchange Commission (SEC), 701 new funds have disclosed their investments in spot Bitcoin ETFs, bringing the total number of holders to approximately 1,950, Bloomberg reports.
Buyers in this growing trend include hedge funds like Millennium Management, which have holdings in at least five Bitcoin ETFs. Key players like Capula Investment Management and Steven Cohen’s Point72 Asset Management have also signaled interest in these ETF.
The list of buyers also includes several entities, from the State of Wisconsin Investment Board to market makers from around the world. financial centers such as Hong Kong, the Cayman Islands, Canada and Switzerland.
Despite Bitcoin price drop nearly 13% in the quarter, these spot Bitcoin ETFs have defied expectations, racking up net inflows of $17 billion this year. BlackRock’s IBIT has emerged as a standout, with assets growing to $20 billion.
Institutional Winds of Change
Noelle Acheson, author of the Crypto Is Macro Now newsletter, points to the growing number of Bitcoin ETF holders as a sign of conviction and diligent research by investors.
However, while the approval of Ethereum ETF Spots While there were significant inflows in July, it is interesting to note that not all financial advisors can recommend these ETFs to clients.
“This reflects a mix of conviction and investors taking the time to ‘do the work,’” Acheson said. “So far, Morgan Stanley is the only major wirehouse whose financial advisors can recommend a diversified BTC spot ETF position. But others will follow, bringing more demand and a long-term view.”
The increase institutional adoption extends beyond Bitcoin, as spot Ethereum ETFs also gained ground. The group of ETH-based ETFs saw inflows of $1.9 billion, excluding the $2.3 billion in outflows from Grayscale Ethereum Trust (ETHE), which converted to an ETF last month.
Adam Guren, founder and chief investment officer of hedge fund Hunting Hill Global Capital, which has reported holdings in the IBIT ETF, noted 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,” and they plan to introduce more cryptocurrency-related products in the U.S., including Bitcoin options and the Solana ETF, which would create additional opportunities for their trading strategies.
At the time of writing, the largest cryptocurrency on the market has lost more than 3% in the last few hours, settling at a trading price of $56,700.
Featured image from DALL-E, chart from TradingView.com
