Institutional interest in bitcoin (BTC) continues to grow, with professional firms showing increased investment in spot bitcoin exchange-traded funds (ETFs) in the United States. According to K33 Research analysts, the number of professional firms holding investments in BTC ETFs rose by 262 in the second quarter of 2024, reaching a total of 1,199. While retail investors still dominate bitcoin ownership, institutional investors have seen a notable increase in their share of total assets under management, rising by 2.41 percentage points to 21.15% in Q2.
Highlighting this trend, senior analyst Vetle Lunde from K33 Research points out a shift in institutional preferences within the bitcoin ETF landscape. Notably, Grayscale bitcoin Trust (GBTC) experienced a decline in institutional capital, while ETFs like Invesco bitcoin Trust (IBIT) and Fidelity bitcoin Trust (FBTC) observed a significant rise in professional investor dominance. Market makers emerged as the top institutional bitcoin ETF owners, with notable investors reducing their exposure due to increased competition and calmer market conditions.
bitcoin-etfs-intensifies">Appetite for bitcoin ETFs Intensifies
Moreover, recent 13-F filings indicate a growing interest in spot bitcoin ETFs, as shown in the Coinbase weekly report from August 16. These filings offer a snapshot of the market's largest players, revealing a substantial increase in institutional holdings of bitcoin ETFs in Q2 2024, totaling $4.7 billion. Financial giants like Goldman Sachs and Morgan Stanley, alongside trading firm DRW Holdings, notably boosted their bitcoin ETF positions during this period.
bitcoin-dominance-grows-amidst-institutional-inflows">bitcoin Dominance Grows Amidst Institutional Inflows
Further bolstering bitcoin's position, the cryptocurrency's market dominance expanded in July, fueled by strong performance and significant institutional investment. Grayscale's August 1 report highlighted that spot bitcoin exchange-traded products attracted around $3 billion in net inflows during the month, leading to an increase in bitcoin's market capitalization relative to the overall crypto market. This growth signifies the growing confidence of institutional investors in the bitcoin market.
According to Farside Investors, ETF inflows displayed positive momentum on August 15, with over $11 million in inflows. Despite this, it is crucial to note that this figure is lower than the cumulative outflows of $81.4 million recorded on August 14, reflecting the fluctuating nature of investment flows in the ETF market.
