Institutional Investment in Bitcoin ETFs Surges
Despite the notorious volatility of Bitcoin prices, major financial institutions are showing a strong commitment to investing in cryptocurrency. Recent data from 13F filings with the Securities and Exchange Commission (SEC) reveals that large entities, including pension funds and hedge funds, have significantly increased their holdings in spot Bitcoin exchange-traded funds (ETFs).
In the fourth quarter of 2024, institutional investors acquired an impressive $38.7 billion worth of spot Bitcoin ETFs, according to Matt Hougan, the chief investment officer at Bitwise. This figure represents a staggering increase, more than tripling the $12.4 billion reported in the previous quarter. Under SEC regulations, investors managing over $100 million in assets are mandated to disclose their holdings each quarter, providing transparency into these burgeoning investments.
Since the launch of Bitcoin ETFs in January 2024, a number of hedge funds and pension funds have begun to invest in these financial products. Over the past year, some institutions have notably ramped up their investments. For instance, the State of Wisconsin’s investment board has raised its holdings to just over 6 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) as of December 31. Similarly, renowned billionaire hedge fund investor Paul Tudor has nearly doubled his stake in IBIT, increasing his shares from 4,428,230 to an impressive 8,048,552.
Additionally, Corvex Management, an asset management firm established by investor Keith Meister in December 2010, disclosed holding over 1 million shares in IBIT by the end of the fourth quarter. According to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, IBIT currently boasts around 1,100 institutional holders that have reported their stakes through 13F filings. He noted that it is uncommon for newly launched ETFs to garner such interest, typically attracting fewer than 10 holders.
“It’s difficult to track, but my estimate is that the previous record for institutional holders in the first year of a new ETF was likely around 350,” Balchunas remarked, highlighting the unprecedented interest in IBIT.
