Most institutional investors held or increased Bitcoin ETF positions in the second quarter

Bitwise reports that US-based institutional investors continue to show strong support for Bitcoin via spot ETFs, with around 66% maintaining or increasing their holdings.

This trend comes amid market volatility and falling prices in the second quarter.

Increase in institutional files

Bitwise Chief Investment Officer Matt Hougan highlighted this trend in an August 15 post on X, noting an increase in the number of applications associated with spot Bitcoin ETFs.

“The institutions are still coming; total submissions are up,” Hougan commented, referring to the 1,924 holder-ETF pairings recorded across all Bitcoin funds in the second quarter. That’s a 30% increase over the 1,479 pairings reported in the first quarter.

While these numbers reflect some overlap due to individual institutions holding positions in multiple ETFs, the steady growth in applications indicates an increase in such holdings.

Hougan’s analysis suggests that these investors are not easily shaken by market downturns. Of the institutions that had invested in Bitcoin spot ETFs in the first quarter, 44% increased their holdings in the second quarter, while 22% maintained their positions. Meanwhile, only 21% reduced their exposure and 13% quit altogether.

“If you thought institutional investors would panic at the first sign of volatility, the data suggests otherwise,” Hougan said.

Hedge funds continue to be major players in the local Bitcoin ETF market, with big names like Millennium, Schonfeld, Boothbay, and Capula prominent among the major holders.

However, the filings also reveal a wide range of investors, including advisors, family offices and select institutional investors, contributing to the growing adoption of Bitcoin ETFs at the moment.

“ETFs are a big marquee that attracts a wide variety of investors. It’s great to see Millennium squared off against the state of Wisconsin in these ETF presentations,” commented Hougan.

Looking ahead, Hougan expressed hope that wealth managers and pension funds will represent an ever-increasing share of this market.

Main holdings of institutional investors

Meanwhile, Q2 filings also revealed that some of the world’s largest financial institutions are expanding their exposure to spot Bitcoin ETFs.

Morgan Stanley reported holding more than 5.5 million shares of iShares Bitcoin Trust (IBIT), valued at $188 million. This position guarantees the investment banking company a place among the top five fund holders of IBIT.

Its filings also revealed smaller investments in a number of other Bitcoin-related ETFs, including the Valkyrie ETF Trust, the Fidelity Wise Origin Bitcoin Fund (FBTC) and Bitwise’s spot Bitcoin ETF.

Similarly, Goldman Sachs reported significant holdings in Bitcoin spot ETFs, with more than $238 million invested in IBIT shares and other funds.

Goldman’s portfolio includes nearly 7 million shares of the iShares Bitcoin Trust and significant positions in the Fidelity Wise Origin Bitcoin ETF and the Invesco Galaxy spot Bitcoin ETF.

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