Shocking Surge: Institutional Investors Are Taking Over Bitcoin ETFs in 2024!
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The latest 13-F Filings were released on August 14, 2024. These reports, which every investment manager who oversees at least $100 million in assets must file with the US SEC every quarter, listed the top managers’ holdings in U.S. publicly traded securities, including Exchange-Traded Funds, in the second quarter of 2024. Among the important trends revealed by the reports, the most prominent was the revelation that in the latest quarter a sharp increase in institutional ownership of US Spot Bitcoin ETFs was witnessed compared to the previous quarter.
What does this new trend attempt to communicate to the Bitcoin Spot ETF sector? Here what we are going to do is to analyse the prominent developments, which happened in the Bitcoin Spot ETF sector in the second quarter of 2024 using all the available data sources.
Why should we do such an analysis? Growing confidence in the US Spot Bitcoin reflects growing confidence in Bitcoin. Let’s understand the market dynamics of Bitcoin with the help of Bitcoin Spot ETFs. Are you ready? Then, let’s start!
Bitcoin Spot ETF Landscape: An Overview
The total market of Bitcoin Spot ETFs is around $76.47B. Grayscale is the top player with a market cap of $32.98B. BlackRock closely follows with a $23.58B market cap.
The below given is the list of top Bitcoin Spot ETFs arranged considering market cap.
| Issuer | Ticker | Price | AUM | Market Cap |
| Grayscale | GBTC | $47.63 | $24.33B | $32.98B |
| BlackRock | IBIT | $34.03 | $17.24B | $23.58B |
| Fidelity | FBTC | $52.24 | $9.90B | $12.04B |
| Ark/21 Shares | ARKB | $59.70 | $2.85B | $3.38B |
| Bitwise | BITB | $32.53 | $2.16B | $2.59B |
| VanEck | HODL | $67.56 | $529.70M | $749.18M |
| Valkyrie | BRRR | $16.91 | $501.80M | $609.99M |
| Franklin Templeton | EZBC | $34.64 | $312.00M | $456.69M |
| WisdomTree | BTCW | $63.38 | $79.70M | $87.81M |
Apart from Grayscale and BlackRock, other prominent Bitcoin Spot ETFs are Fidelity, Ark/21 Shares, Bitwise, VanEck, Valkyrie, Franklin Templeton and WisdomTree.
Fidelity displays a market cap of $12.04B. Ark/21 Shares and Bitwise follow with $3.38B and $2.59B respectively. The market cap values of other ETFs range between $749.18M and $87.81M. Among the ETFs that fall inside the range, VanEck is the topmost one, and WisdomTree is the weakest.
Bitcoin ETF Net Inflow & Net Assets Analysis
As of today, the total daily net inflow of Bitcoin Spot ETFs is $36.01M. And, the total net assets value is $54.35B.
In late January 2024, the net assets value was just $25.28B. At the time the price of Bitcoin was nearly $39,880.60. As the price of BTC started to climb, the value of total net assets also followed the trend naturally. The value reached a peak of $60.96B on 13th March. At that time, the BTC price also made a milestone crossing $73,000. Since then, the value of total net assets has remained in a range between $47.08B and $63B.
This year, we have witnessed several periods of consistent outflow: between 22nd Jan and 25th Jan, 18th March and 22nd March, 12th April and 18th April, 24th April and 2nd May, 13th June and 24th June, and most recently between 2nd August and 6th August.
Among these periods of consistent outflows, the most bitter was the one witnessed between 24th April and 2nd May. During this period, the value of total net assets dropped from $53.65B to $48.48B. On 1st May, the outflow was so intense that it pushed the value down to $47.08B, though it slightly recovered the next day. The daily total net inflow on 1st May was around -563.77M.
During the period of continuous outflow between 13th June and 24th June, the value of total net assets fell from $58.53B to $51.53B.
This year, the net inflow scenario was largely positive in nature. Between 25th January and 15th March, a strong positive sentiment was observed. On 12th March, the daily total net inflow of Bitcoin Spot ETFs was as high as $1.05B. The second highest daily total net inflow was recorded on 4th June.
This month – August 2024, the Bitcoin Spot ETF market showed poor performance in terms of daily total net inflow. A period of consistent outflow was developed between 2nd August and 6th August. The highest inflow of the month was $192.56M reported on 8th August. The highest outflow of the month was -$237.45M, recorded on the first day of the period of consistent outflow of the month – 2nd August.
Top Bitcoin Spot ETF Issuers by Holdings
It is high time to address that big question: which issuer has the highest number of bitcoin holdings.
When we think about big names, what comes to our mind first is Grayscale and BlackRock. Definitely, one of them would be the topmost.
Those who have made a guess in favour of Grayscale may find it difficult to digit what we are going to reveal next.
Actually, the ETF issuer with the highest number of BTC holding right now is BlackRock, which has over 3,45,516 BTC. Grayscale is not too far behind. With an impressive BTC holding of 2,33,759BTC, this issuer closely follows the topmost.
| Issuer | Bitcoin Holdings |
| BlackRock | 3,45,516BTC |
| Grayscale | 2,33,759BTC |
| Fidelity | 1,94,834BTC |
| Ark/21 Shares | 46,021BTC |
| Bitwise | 37,900BTC |
| VanEck | 10,917BTC |
| Valkyrie | 6,360BTC |
| Franklin Templeton | 5,249BTC |
| WisdomTree | 3,494BTC |
Fidelity, with 1,94,834, remains as an undeniable presence. Other important issues, with at least 10,000 BTC, are 21Shares (46,021 BTC), Bitwise (37,900BTC), and VanEck(10,917BTC). No other issuer has a BTC holding worth more than 10,000 BTC.
Bitcoin Spot Issuers’ Changes in BTC Holdings: An Simple Analysis
So now we are aware of the preliminary scenario. Time to enter into its next layer. Here what can be done is to attempt to understand changes in BTC holdings.
| Issuer | Bitcoin Holdings (1D BTC) | Bitcoin Holdings (1D%) | Bitcoin Holdings (7D BTC) | Bitcoin Holdings (7D%) |
| BlackRock (IBIT) | +314.44 BTC | +0.10% | +1183.67 BTC | +0.34% |
| Grayscale (GBTC) | -448.18 BTC | -0.19% | -349.41 BTC | -1.49% |
| Fidelity (FBTC) | +284.00 BTC | +0.16% | +1115.00 BTC | +0.63% |
| Ark/21 Shares (ARKB) | 0 | 0 | +1617.76 BTC | +3.63% |
| Bitwise (BITB) | +201.61 BTC | +0.53% | +196.16 BTC | +0.52% |
| VanEck (HODL) | +683.23 BTC | +6.42% | +615.28 BTC | +5.74% |
| Valkyrie (BRRR) | -0.19 BTC | 0 | -0.43% | 0 |
| Franklin Templeton (EZBC | +406.78 BTC | +6.42% | +423.21 BTC | +6.70% |
| WisdomTree (BTCW) | +218.75 BTC | +6.42% | 196.96 BTC | +5.74% |
In the last seven days, only Grayscale has shown a negative change of -1.46%. The total BTC holdings of Grayscale has decreased by 3409.41 BTC. During this period, the issuer which has gained the most number of BTC is Ark/21 Shares. Grayscale, with a gain of 1183.67 BTC and Fidelity, with a gain of 1115.00 BTC closely follows. In terms of gain in holding percentage, Franklin Templeton registers the highest gain percentage of 6.70%. VanEck and WisdomTree closely follow with +5.74% increase each.
Similarity, in the last 24 hours, none of the top issuers have suffered a reduction, except Grayscale. Its BTC holdings have reduced by around 448.18 BTC.
During this period, the issuer which has gained the highest number of BTC is VanEck, with +682.23BTC. Franklin Templeton closely follows with +406.78 BTC gain. With +314.44 BTC gain, BlackRock stays as the third best gainer in the said period. However, in terms of gain in percentage, VanEck, Franklin Templeton and WisdomTree are equally good as they mark 6.42% 24-hour gain each.
Highlights of 2Q24 13-F Filings for US Spot Bitcoin ETFs
Here are the key trends in the Bitcoin Spot ETF sector revealed by the 13-F filings of the second quarter of 2024.
One of the major findings relieved is the sharp increase in the institutional ownership of US Spot Bitcoin ETFs.
Institutional ownership of these ETFs grew from 21.4% to 24.0%. Meanwhile, hedge fund holdings in these ETFS decreased from 37.7% to 30.5%. The proportion of investment advisor holdings is expected to continue increasing as more brokerage firms approve Bictoin ETFs for their advisors to offer to clients.
Goldman Sachs and Morgan Stanley are named in the report as the notable new investors in the Bitcoin Spot ETF sector. As per the report, Goldman Sachs has $412 million in holdings, and Morgan Stanley enjoys $188 million.
Another notable finding of the report is that during the second quarter of 2024 the total Asset Under Management of the Bitcoin Spot ETF sector decreased from $59.3 billion to $51.8 billion. The report observes that this decrease in the AUM was not due to a lack of interest in the Bitcoin Spot ETF sector, but due to a fall in the price of Bitcoin in the period.
In conclusion, it is fine to assume that the second quarter of 2024 was a favourable period for the Bitcoin Spot ETF sector. The increase in institutional ownership of US Spot Bitcoin ETFs can be considered as an extremely positive trend. The long-term implications of this trend is yet to be seen. There is no doubt that this trend is likely to benefit not only the Bitcoin Spot ETF sector but also the entire Bitcoin market. How? Let’s wait and see
Also Check Out: Bitcoin Price Prediction: Analyst Predicts Rebound to $69K After Recent Dip
