Spot Bitcoin ETFs See Unprecedented Institutional Adoption, Poised To Break Records

In a post on X on August 21, Bitwise Chief Investment Officer Matt Hougan said institutional investors are adopting Bitcoin ETFs “faster than any other ETF in history.”

He noted that Bitcoin spot ETFs “are the fastest-growing ETFs of all time,” having accumulated $17.5 billion in net flows since launching in January. Hougan added that they were about to break ETF records:

“This is about to smash the previous ETF record, the Nasdaq-100 QQQs, which raised $5 billion in its first year. It’s not even close.”

The Invesco QQQ is an ETF based on the Nasdaq-100 Index and one of the oldest, largest and most traded funds on the market.

Bitcoin ETFs Soar, Spot Markets Lag

Hougan said critics argue that only retail investors buy Bitcoin ETFs, pointing to 13F filings that show institutions have only 21% of the ETF’s current assets under management.

However, he said BTC products lead institutional adoption, both in terms of the number of such holders and AUM, compared to other fast-growing ETFs.

“Bitcoin ETFs are by far the leaders in terms of institutional adoption. This is true whether measured by number of institutions or by AUM.”

1/ Institutional investors are adopting Bitcoin ETFs faster than any other ETF in history. Don’t believe the “it’s only retail” story. The data proves otherwise.

a thread

— Matt Hougan (@Matt_Hougan) August 21, 2024

The narrative can be reinforced when looking at hedge fund adoption of Bitcoin ETFs. Earlier this week, investment firm River research analyst Sam Baker reported that 60%, or 15 out of 25, of the largest US hedge funds have holdings in Bitcoin ETF.

“It didn’t sell towards the second quarter, and most of it is still piling up,” he said.

The largest holder is Millennial Management, which has 27,263 BTC, followed by Schonfeld Strategic Advisors with 6,734 BTC, according to River.

60% of the largest hedge funds in the US have Bitcoin ETFs

It didn’t sell until the second quarter and most of it is still piling up

This is how institutional adoption of bitcoins continues to rise👇 pic.twitter.com/sOpzE5XKDj

— Sam Baker (@macromule) August 19, 2024

Local BTC ETFs still flowing

Spot Bitcoin ETFs in the United States posted a fifth consecutive day of inflows on Aug. 21 with $39.5 million, according to preliminary data from Farside Investors.

Grayscale Bitcoin Mini Trust (BTC) led the pack, with $14.2 million inflows, while Fidelity Wise Origin Bitcoin Fund (FBTC) was second with $10.7 million.

So far this month, 66% of trading days have seen positive inflows for spot Bitcoin ETFs, despite asset prices declining 8.5% since early August.

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