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The first quarter of 2024 marks a turning point in the adoption of Bitcoin ETFs by institutional investors. According to recent statements, more than 1,500 investment firms now hold significant shares in these innovative products.
A Massive Influx of Institutional Investments
Data compiled by Fintel reveals that at the end of March, companies managing more than 100 million dollars in Bitcoin ETFs accumulated around 10.6 billion dollars in assets. Among the most popular ETFs are the Grayscale Bitcoin Trust (GBTC), BlackRock’s iShares Bitcoin Trust (IBIT), the Fidelity Wise Origin Bitcoin Fund (FBTC), and the ARK 21Shares Bitcoin ETF (ARKB).
The hedge fund giant Millennium Management tops the list with nearly 2 billion dollars invested in various Bitcoin ETFs. It is closely followed by Susquehanna International Group, which has allocated 1.1 billion dollars to these products.
Other major players, such as Bracebridge Capital (404 million), Boothbay Fund Management (303 million) and Morgan Stanley (269.9 million), have also wagered considerable sums on Bitcoin ETFs.
Although these allocations represent only a fraction of the total assets under management by these investment firms, they nevertheless signify a significant paradigm shift.
Unprecedented Records for New Products
As stressed by Matt Hougan, Chief Information Officer of Bitwise, this level of institutional holding is exceptional for newly launched ETFs. For comparison, the very popular Gold ETF attracted only 95 professional investors during its first 13F filing in 2004, despite raising over a billion dollars in its first five days.
While retail investors remain the majority, institutions already hold about 20% of Bitcoin ETF assets. According to Mr. Hougan, this is just the tip of the iceberg:
“Current allocations are just a downpayment. Hightower Advisors might have 68 million allocated today, only 0.05% of its assets. Following trends, this will increase over time. A 1% allocation would mean 1.2 billion for this single firm. Multiply that by the growing number of participants, and you understand my enthusiasm“.
The enthusiasm of professional investors for Bitcoin ETFs marks a key milestone in the democratization and mainstream 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 heights.
Let’s hope that this first quarter of 2024 will go down in history as the inflection point of Bitcoin’s reign over financial markets.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.