NAIROBI (CoinChapter.com) — Institutional investors kept or increased their Bitcoin ETF holdings during Q2 2024 despite a 14.5% drop in Bitcoin’s price. According to 13F filings with the U.S. Securities and Exchange Commission, 66% of institutional holders either held steady or added to their U.S.-based spot Bitcoin ETF positions.
Bitcoin ETF holdings grew as 44% of asset managers increased their positions, while 22% maintained their existing stakes. Bitwise Chief Investment Officer Matt Hougan described this as a “pretty good result,” underscoring the continued demand among institutional investors, even with market volatility.
Surge in Bitcoin ETF Holdings Reflects Institutional Confidence
The number of institutional holders and ETF pairs rose by 30% from Q1, growing from 1,479 to 1,924 in Q2. This increase occurred despite a decline in Bitcoin’s value. Institutional investors demonstrated what Hougan referred to as “diamond hands,” holding their assets through the market downturn without panic selling.
Hedge funds remain at the forefront of Bitcoin ETF investments, with major players like Millennium, Schonfeld, and Boothbay among the top holders. Hougan observed that these funds are joined by a diverse range of institutional investors, including family offices and wealth managers, indicating a broadening interest in Bitcoin ETFs.
He emphasized that this variety in investor profiles contributes to the robustness of the ETF market, as it attracts a wide range of participants into the Bitcoin space.
The analysis revealed that 13% of institutional investors exited their positions, while 21% reduced their holdings.
However, the majority displayed a steady commitment to their Bitcoin ETF investments. This resilience contrasts with the behavior typically seen among retail investors, who often react to volatility by liquidating assets.
On Aug. 14, trading volume for spot Bitcoin ETFs reached $1.2 billion, up from $1.18 billion the previous day.
Despite the increase in trading activity, Bitcoin experienced volatility, with its price dropping 3% within an hour after briefly surpassing $61,000. The price later recovered slightly to $58,530, down 4.35% over the past 24 hours.
Major Financial Institutions Choosing BTC ETFs
Morgan Stanley and Goldman Sachs boosted their exposure to Bitcoin ETFs in Q2. Morgan Stanley reported owning over 5.5 million shares of BlackRock’s iShares Bitcoin Trust (IBIT), valued at $188 million as of June 30.
This position placed Morgan Stanley among the top five IBIT fundholders. Goldman Sachs, in contrast, held more than $238 million in shares of IBIT and other spot Bitcoin ETFs.
The continued investment from major financial institutions underscores the growing importance of Bitcoin ETFs in the financial ecosystem.
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