More and more institutional investors are investing in Bitcoin (BTC) through exchange-traded funds (ETFs), as shown by their 13F forms, public quarterly reports on their treasury assets.
An investigation of such forms by the investment firm Bitwise indicates that the number of institutional investors who own ETF of bitcoin increased by 14% from the first quarter of 2024 to the second, going from 965 to 1,100.
It also notes that the participation of assets under management (AUM) of institutions in bitcoin ETFs increased from 18.74% to 21.15% on a quarterly basis. Thus, they closed the second quarter with USD 11 billion in such instruments.
“Institutions are coming, and they are coming in large numbers,” noted Bitwse’s report by chief investment officer Matt Hougan.
While 79% of bitcoin ETF AUM is still dominated by retail investors, the data mentioned above indicates an increase in institutional adoption. “This is a great sign,” Hougan said. “If institutions buy bitcoin when prices are volatile, imagine what could happen in a bull market,” he added.
The specialist’s research also highlights that Bitcoin ETFs are being adopted by institutions at the fastest pace of any ETF in history. It bases this on the number of institutional holders and their AUM during the first two quarters of the 10 exchange-traded funds that performed best in their first month on the market.
Currently, the average investor who reported owning ETFs bitcoin in the second quarter it allocated just 0.47% of its portfolio. “This figure looks very encouraging,” Hougan said, as new entrants to the market tend to increase their exposure over time. “I suspect the median holding of institutional investors will be above 1% a year from now, and will continue to rise from there,” he said.
Institutions see current bitcoin prices as an opportunity
The growth of institutional adoption occurred while, as CriptoNoticias reported, the price of bitcoin crosses a sideways corrective period. This is since March when it touched the all-time high of USD 73,700, as the chart shows. Therefore, the entries reflect that they are considering these prices as a buying opportunity.
Bitcoin price over the past six months. Source: TradingView.
This panorama takes place as The market is expectant of the upcoming data macroeconomicThe financial power is expected to start cutting interest rates, a move that lowers bond yields and motivates a rotation into risk markets such as bitcoin.
“Bitcoin ETF inflows will be higher in 2025 than in 2024, and higher in 2026 than in 2025,” Hougan warned. The reason is that the first year is often challenging for exchange-traded funds, but momentum usually builds later. He also points out that major trading platforms have not yet added these instruments.
According to its data, institutions control roughly 80% of the US stock market. By comparison, the most aggressive estimates it compiles indicate that they hold 10% of the entire bitcoin supply, suggesting significant growth potential.
For that number to reach just 50% of the market, Institutional investors would need to buy $500 billion worth of bitcoin“Needless to say, that would have a huge impact on the price,” the Bitwise executive concluded.
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