Bitcoin ETF To Grab $5B AUM From Over 700 Institutional Investors: Bitwise CIO

Spot Bitcoin ETFs are making significant inroads among institutional investors, according to a recent memo from Bitwise CIO Matt Hougan. As reported in a post on X by Bitwise, more than 500 professional investment firms have already invested in Bitcoin ETFs. Moreover, the BITB ETF issuer highlighted that the number of institutional investors will surge beyond 700.

Bitcoin ETF’s Institutional Adoption To Sustain Momentum

The Bitwise CIO expects the number of firms to potentially exceed 700 as the May 15 filing deadline concluded. Furthermore, it will push the total assets under management (AUM) close to $5 billion that is held by these institutional players. In addition, Bitwise highlighted three key takeaways in Hougan’s memo.

First, professional firms are increasingly owning Bitcoin ETFs, with 563 firms reported to hold $3.5 billion worth as of Thursday, May 9. Second, the scale of this professional investor ownership is unprecedented for a new ETF, with most new ETFs attracting far fewer 13F filers in their initial months on the market.

Third, while professional investors currently own only 7-10% of all BTC ETF assets, the bulk of the float is still held by retail investors. However, this could represent just the beginning of larger institutional allocations.

Bitwise CEO Hunter Horsley emphasized the shifting perceptions surrounding Bitcoin ownership. In a quote referencing Hougan’s memo, Horsley stated, “First they said it’s only crazy internet people that own Bitcoin. Then they said it’s only retail that owns Bitcoin.”

Moreover, the Bitwise CEO hailed the growing institutional adoption of these ETFs. However, he also expects increased skepticism from Bitcoin critics. Horsley stated, “Now they see over 500 massive wealth firms, banks, & institutional investors bought Bitcoin in the first 2.5 months of ETFs. I wonder what they will say next.”

Also Read: Bitcoin ETF Trading Volumes Surge Sharply, GBTC Sees $27 Million Inflows

Millennium Management Emerges As Biggest Holder In Spot BTC ETFs

Supporting this trend, Millennium Management recently disclosed its substantial investments in these ETFs through its 13F-HR SEC filing. With over $2 billion allocated to various Bitcoin ETFs, Hence, Millennium Management is now the largest holder of Bitcoin ETFs.

The firm’s significant stakes include $844.18 million in BlackRock’s iShares Bitcoin Trust (IBIT) and $806.64 million in the Fidelity Wise Origin Bitcoin Fund (FBTC). Additionally, Millennium Management has invested $202.02 million in the Grayscale Bitcoin Trust (GBTC).

Furthermore, the firm poured in $45 million in the ARK 21Shares’ ARKB ETF and $44,737,805 in the Bitwise’s BITB ETF. Millennium’s total allocation of almost $2 billion to Bitcoin ETFs represents around 3% of its $64 billion fund. This level of commitment from such a major institutional player underscores the growing acceptance and integration of Bitcoin ETFs within traditional financial markets.

Also Read: BlackRock, Fidelity, Bitwise Bitcoin ETF Grab $205M From New York RIA