[NEWS] 66% of institutional investors hold Bitcoin spot ETFs

Cryptocurrency investment company Bitwise announced that about 66%, or one-third, of institutional investors hold Bitcoin (BTC) spot ETFs.

Many institutional investors continue to enter Bitcoin spot ETFs, and the total number of applications is increasing. There are currently 1,924 ETF holders, up from 1,479 in the first quarter. This is an increase of about 30%. Considering the drop in Bitcoin prices in the second quarter, this is not a bad number.

On the 14th, Bitcoin (BTC) spot ETFs recorded an outflow of $81.36 million (about 12 billion yen), putting an end to two days of positive inflows, but institutional investors are holding on to them.

Only two funds, asset management company BlackRock's IBIT and Franklin's EZBC, recorded net inflows on the 14th.

According to Soso Value data, IBIT's reserves increased by $2.68 million, while EZBC saw a net inflow of $3.42 million.

Grayscale's Bitcoin spot ETF GBTC saw outflows of $56.87 million, while Fidelity's FBTC saw outflows of $18.05 million.

Ark21Shares' ARKB and Bitwise's BITB also saw outflows of $6.77 million and $5.78 million, respectively.

Bitcoin spot ETF trading volume reached $1.3 billion on the 14th, a slight increase from the previous day's trading volume of $1.18 billion.

As for Bitcoin, the trading session was volatile. On the 14th, it broke through $61,000 and reached an intraday high of $61,687.76, before dropping 3% in an hour to below $57,000. It has since recovered a bit and is on its way to reaching $58,000. According to Bitwise, about 66% of institutional investors hold Bitcoin spot ETFs, and some are increasing their holdings. Bitwise CIO Matt Hougan said in a post on X that "institutional investors continued to add Bitcoin spot ETFs to their portfolios in Q2, and this trend continues." 

He added, "Institutional investors have diamond hands. Of institutional applicants who allocated in Q1, 44% increased their Bitcoin spot ETF positions in Q2, 22% remained flat, 21% reduced their positions, and 13% exited. This is a pretty good performance compared to other ETFs."

In conclusion, Hougan said that if you thought institutional investors would panic at the first sign of volatility, the data shows that's not the case, and they are holding steady and holding Bitcoin spot ETFs. 

Bitcoin spot ETFs are a big tent

He further stated that Bitcoin spot ETFs are a big tent that will attract a wide range of investors, and over time, the proportion of asset management companies and pensions will increase. 

Reference: Bitwise Matt Hogan
Image: Shutterstock

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