- Growth in Investment Advisors' Spot Bitcoin ETF Holdings
- Decline in Hedge Fund Bitcoin ETF Investments
- Net Inflows into ETFs Despite Bitcoin Price Drop
The second quarter of 2024 saw a significant increase in investment advisors' holdings in Spot Bitcoin ETFs, while hedge fund investments slightly declined.
Growth in Investment Advisors' Spot Bitcoin ETF Holdings
The proportion of institutional investment in Spot Bitcoin ETFs by investment advisors rose by 3% in Q2 2024. Investment advisors now hold 9% of total institutional investments in these ETFs. This data pertains to firms managing over $100 million in assets, which are required to file the 13-F form with the US Securities and Exchange Commission (SEC). Coinbase anticipates this trend will continue as more brokerage houses complete their due diligence on these funds.
Decline in Hedge Fund Bitcoin ETF Investments
Hedge funds decreased their holdings in Bitcoin ETFs due to their focus on leveraging price differences between Bitcoin futures and ETFs. The Chicago Mercantile Exchange (CME) reported a 15% increase in Bitcoin futures contracts during Q2 2024, reaching $2.75 billion.
Net Inflows into ETFs Despite Bitcoin Price Drop
Despite the overall market downturn, the ETF complex saw $2.4 billion in net inflows from institutional investors in Q2. BTC price fell from an all-time high of $71,333 on April 1 to $60,888 by June 30, declining about 14.6% for the quarter. Since the launch of spot Bitcoin ETFs on January 11, 2024, net inflows have totaled $17.35 billion, highlighting continued institutional interest despite market fluctuations.
Investment advisors continue to increase their holdings in spot Bitcoin ETFs despite the summer slowdown. Hedge funds have shifted their focus to Bitcoin futures.
