Institutional investors increased their bitcoin exposure in the second quarter of 2024, 13F filings show. Bitwise's Matt Haugan called the adoption rate “historic.” But traditional players don't stop there, he said.
Spot bitcoin exchange traded funds received more from institutional investors in the second quarter of 2024.
That trend is likely to continue.
This is according to Bitwise Chief Investment Officer Matt Haugan Analyzed The latest batch of 13F filings — the quarterly financial disclosures investment managers must file with the Securities and Exchange Commission — in Tuesday's Post
“One thing I do know is that most ETFs build over time,” Haugan wrote.
“One year will be a challenge, but the momentum will build in years two, three, four and five. I expect the same to happen here.
Wall Street Acceptance
Institutional investors own about 80% of the US stock market, but these same investors own only 10% of all Bitcoin.
“To get that number to just 50% of the market, professional investors would have to buy about $500 billion of bitcoin,” he said.
Looking at the latest 13F filings, Haugan says they are already getting into new funds.
Join the community to get our latest articles and updates
The number of institutional investors holding bitcoin ETFs increased 14% compared to the first quarter, from 965 to 1,100 entities.
That's accounting for 112 investors who held bitcoin ETFs in the first quarter but sold in the second quarter, Haugan said. That means 247 new companies have disclosed products.
“There's some healthy chaos in these streams,” Haugan said.
Institutional investors accounted for 18.74% of total assets under management in bitcoin ETFs in the first quarter of the year, while that number increased to 21.15% in the second quarter, Haugan said.
That means institutional investors ended the quarter with $11 billion worth of bitcoin held through ETFs.
“It's a great sign,” he added. “If firms buy bitcoin when prices are volatile, imagine what will happen in a bull market.”
Although the price of Bitcoin fell 12% in the second quarter, it is still up 41% since New Year's Day.
Historical presentation
“Institutions are adopting bitcoin ETFs faster than any ETF in history,” Haugan said.
Bitcoin ETFs already have over 1,100 holders.
But the three fastest-growing ETFs in history, Invesco's QQQ ETF, SPDR Gold Shares ETF and JPMorgan's BetaBuilders Japan ETF — the most adopted by institutions — received only 374 holders, 118 holders and 77 holders, respectively. Comparable time.
What's more, Invesco's 374 holders gained over nine quarters, not two, because Haugan couldn't find 13F data on the fund until 2001.
Finally, Haugan said 13F filings showed the average investor allocated only 0.47% of their portfolio to bitcoin — a “very encouraging number,” he said.
Professional investors “tend to build their positions over time,” Haugan writes. “Most people start with 1% or less of their portfolio, but that number can grow to 2.5% or 5% over time.”
In other words, no matter what other institutional investor decides to gain exposure to Bitcoin ETFs, existing professionals will increase their own exposure over time.
“Organizations are coming, and they're coming in size,” Haugan said.
Crypto market movers
Bitcoin is trading at $59,200, down 2.7% in the last 24 hours. Ethereum fell 3.3% to trade at $2,575.
What are we studying?
$200,000 for Bitcoin? Only one factor driving the Fed's price – NewsState Street partners with Taurus for tokenization – Milk RoadUS Treasury withdraws proposed reporting requirements for unhosted wallets – Not bound$USD weakening = crypto strengthening – Milk Road'Short-sighted and stupid': Dem megadonor abandons crypto super PACs – Political
Tom Carreras is a market correspondent News. Got a tip? Email him [email protected].
Related TopicsBITCOINBITCOIN ETF
