Despite the recent subdued performance of Bitcoin, the latest 13-F filings for spot exchange-traded funds (ETFs) present a bullish outlook for BTC. Bitwise Chief Investment Officer Matt Hougan has highlighted three key insights from the second quarter filings, revealing a strong and sustained institutional interest in Bitcoin.
The first notable trend is the marked increase in institutional engagement with Bitcoin ETFs during Q2. Hougan observed a rise from 1,479 holder-ETF pairs in the first quarter to 1,924 in the second, translating to a 30% increase. This growth occurred even as Bitcoin prices fell, suggesting that institutional investors are viewing Bitcoin as a viable long-term asset rather than a mere speculative investment. Hougan emphasized that although the increased count does not directly equate to 1,924 unique institutions, the percentage increase remains significant, underscoring continuing institutional adoption of Bitcoin ETFs.
The second insight focuses on institutional investors’ holding patterns, revealing a robust commitment to Bitcoin ETFs. According to Hougan, 44% of Q1 filers increased their positions in Q2, 22% held their positions steady, 21% decreased, and 13% exited. Such data indicates that more than two-thirds of institutions either maintained or expanded their Bitcoin ETF holdings amid considerable price volatility. This resilience is indicative of “diamond hands,” a term popularized within the cryptocurrency community to describe investors who hold onto their assets despite market downturns. Hougan noted that these patterns defy expectations of institutional panic selling in the face of volatility, affirming their steady approach.
Lastly, Hougan’s analysis underscores the broad and diverse investor base participating in Bitcoin ETFs. Prominent hedge funds such as Millennium, Schonfeld, Boothbay, and Capula were among the top holders. Additionally, a notable mix of advisors, family offices, and institutional investors like the State of Wisconsin joined the fray. The diverse range of participants highlights the widespread appeal of Bitcoin ETFs. Recently, it was disclosed that the Wisconsin Pension Fund had increased its Bitcoin ETF holdings. As per an SEC filing, the State of Wisconsin Investment Board reported owning 2,898,051 shares of the iShares Bitcoin Trust as of June 30, valued at $98.9 million, up from the 2,450,400 shares reported in May.
As of the latest data, Bitcoin was trading at $58,035, painting a picture of a resilient asset continuing to attract institutional confidence.
