According to CoinShares Research, major investment firms Goldman Sachs, Capula Management, and Avenir Tech became the largest buyers of Bitcoin (BTC) exchange-traded funds (ETFs) in Q2 2024.
Major BTC ETF Buyers
An analysis of quarterly 13F filings by major fund managers revealed that these three investment firms collectively purchased nearly $1.3 billion worth of BTC ETF shares. Since launching in January, Bitcoin ETFs have witnessed enormous demand, partly driven by adoption from large financial institutions such as Morgan Stanley.
Statistics and Data
According to CoinShares, Capula bought BTC shares worth approximately $470 million since March, while Goldman Sachs and Avenir bought $419 million and $388 million, respectively. Additionally, fund managers Galacia Asset Management and DE Shaw purchased $307 million and $174 million worth of shares, respectively. Almost half of Avenir's holdings are now comprised of BTC funds. The largest outflows came from crypto-native hedge fund Digital Currency Group, which sold $732 million in shares since March. Overall, hedge funds hold the largest portfolio allocations of Bitcoin, averaging 2.2%, while private equity firms hold around 1.4%. Adoption among banks and pension funds remains negligible, with 0% and 0.1% portfolio allocations, respectively.
Future of Crypto ETFs
Ongoing adoption of crypto ETFs by established wealth managers is likely to result in larger allocations to these products even among conservative institutions such as pension funds. Katalin Tischhauser, head of investment research at crypto bank Sygnum, noted that many large investors, such as sovereign wealth funds and pension funds, are poised to invest in ETFs. In the future, crypto is likely to become part of model portfolios, with products tailored to different risk profiles.
The market for crypto ETFs continues to evolve, and the participation of major financial players signals the approach of new changes in the investment landscape.
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