Institutional Investors Boom in Bitcoin Spot ETFs: 262 New Firms Join

K33 Research: Institutional Investor Activity Increased in Bitcoin Spot ETFs in the Second Quarter

Despite Bitcoin’s recent decline, institutional adoption of spot ETFs tracking the cryptocurrency experienced a notable boost in the second quarter of 2024. In the second quarter of 2024, institutional usage of the US spot Bitcoin ETFs increased by more than 27%. As stated in an August 16 X post by Vetle Lunde, a senior analyst at K33 Research, more than 262 new organizations have invested in spot Bitcoin ETFs.

According to 13F filings, 1,199 professional firms held investments in U.S. spot ETFs as of June 30, marking an increase of 262 firms over the quarter.

Lunde

How Will Increasing Institutional Adoption of Bitcoin ETFs Affect Prices?

As institutions own substantial wealth that has the ability to influence cryptocurrency markets, their continued adoption of ETFs could propel the price of Bitcoin considerably. Bitcoin must continue to gain traction with institutions in order to surpass previous records. As per Lunde, retail investors continue to be the largest holder cohort, even with the increased institutional usage of Bitcoin ETFs.

While retail investors still hold the majority of the float, institutional investors increased their share of total assets under management (AUM) by 2.41 percentage points, now accounting for 21.15% in Q2.

Lunde

Bitcoin on the Decline: Are ETF Inflows Triggering the Decline?

Even while institutional portfolio allocation to US Bitcoin ETFs is increasing, the price of Bitcoin has been unable to sustain momentum over the psychological $60,000 barrier. August 14 saw a drop in bitcoin below $60,000. At $58,660, the world’s first cryptocurrency is also down 2.72% on the weekly chart.

Bitcoin ETF inflows are still stagnant, which is contributing to the price decline. According to Farside Investors statistics, ETF inflows turned positive on August 15, with inflows totaling over $11 million. That being said, this is a long cry from the $81.4 million in total outflows that were documented on August 14.

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