ETFs
More than 1,500 investment companies are rushing into Bitcoin ETFs.
12:30 p.m. ▪ 3 min reading ▪ by Fénelon L.
The first quarter of 2024 marks a turning point in the adoption of Bitcoin ETFs by institutional investors. According to recent filings, more than 1,500 investment companies now hold significant stakes in these innovative products.
A massive influx of institutional investments
Data compiled by Fintel reveals that as of the end of March, companies managing more than $100 million in Bitcoin ETF accumulated approximately $10.6 billion in assets. Some of the most popular ETFs include Grayscale Bitcoin Trust (GBTC), BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB).
Hedge fund giant Millennium Management tops the list with nearly $2 billion invested in various Bitcoin ETFs. It is closely followed by Susquehanna International Group, which has allocated $1.1 billion for these products.
Other major players, such as Bracebridge Capital (404 million), Boothbay Fund Management (303 million) and Morgan Stanley (269.9 million), have also bet considerable sums on Bitcoin ETFs.
Although these allocations represent only a fraction of the total assets under management by these investment firms, they nevertheless mark an important paradigm shift.
Unprecedented records for new products
As stress According to Bitwise Chief Information Officer Matt Hougan, this level of institutional ownership is exceptional for newly launched ETFs. For comparison, the wildly popular Gold ETF attracted only 95 professional investors when it first filed 13F in 2004, although it raised more than $1 billion in its first five days.
While individual investors remain in the majority, institutions already hold around 20% of Bitcoin ETF assets. According to Mr. Hougan, this is just the tip of the iceberg:
“The current allocations are just a down payment. Hightower Advisors could have 68 million euros today, or only 0.05% of its assets. Following trends, this figure will increase over time. A 1% allocation would mean 1.2 billion for this company alone. Multiply that by the growing number of participants, and you understand my enthusiasm.”
The enthusiasm of professional investors for ETFs Bitcoin marks a key milestone in the democratization and widespread adoption of cryptocurrencies. As regulators gradually pave the way for more Bitcoin-backed investment products, the influx of institutional capital is expected to intensify, potentially propelling BTC prices to new highs.
Let’s hope that this first quarter of 2024 will go down in history as the inflection point of Bitcoin’s reign in the financial markets.
Maximize your Cointribune experience with our “Read to Earn” program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning benefits.
Click here to join “Read to Earn” and turn your passion for crypto into rewards!
Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.