Bitwise Reveals Massive Investment In BTC & ETH ETFs By Major RIA

Bitwise, a crypto ETF issuer, has revealed massive investments in its Bitcoin and Ethereum ETFs from a large Registered Investment Advisor (RIA). This follows a broader trend of increased institutional adoption of crypto ETFs. Meanwhile, the asset manager’s Bitcoin and Ethereum ETFs saw significant inflows on Friday.

Bitwise Bitcoin & Ethereum ETFs Attracts Investment From RIA

Bitwise CEO Hunter Horsley revealed on X that the RIA had accumulated several million dollars worth of their Bitcoin ETF (BITB) and Ethereum ETF (ETHW). Furthermore, the RIA has also invested in the Bitwise 10 Crypto Index (BITW) ETFs across client portfolios. The latest announcement comes amid record-breaking inflows into BTC ETFs.

On Friday, August 23, Bitcoin ETF flows were positive for $252 million, according to Farside UK data. It brings the weekly total to $506.4 million. This surge in investment reflects the strong confidence of institutional and retail investors in the crypto market as Fed rate cuts inch closer. Notably, BlackRock, the world’s largest asset manager, reported $86.8 million in BTC ETF inflows while Fidelity attracted $64 million.

Moreover, Bitwise saw robust $42.3 million in inflows, reinforcing its position as a key player in the crypto ETF space. Other notable players included Ark Invest with $23.8 million, VanEck with $14.4 million, and the BTC ETF with $50.8 million. In contrast, Grayscale’s GBTC experienced $35.6 million in outflows.

While Bitcoin ETFs have garnered substantial interest, Ether ETFs have faced a more challenging environment. On August 23, ETH ETFs saw net outflows of $5.7 million, contributing to a weekly total of $44.5 million in outflows. Grayscale’s Ethereum Trust (ETHE) led the outflows with $9.8 million.

Despite the overall negative flows, Bitwise’s ETH ETF continued to attract investment. ETHW saw a modest inflow of $1.4 million, and VanEck’s ETHV the the charge with $2 million in inflows., signaling confidence from certain segments of the market.

Institutional Adoption of Bitcoin ETFs Surges

The substantial inflows into BTC ETFs reflect a broader trend of increasing institutional adoption. Goldman Sachs, in a recent 13F filing, disclosed that it held significant positions in several Bitcoin ETFs as of June 30. The bank reported $238.6 million in iShares Bitcoin Trust, $79.5 million in Fidelity’s FBTC, and $35.1 million in Grayscale BTC, among other holdings.

Similarly, Morgan Stanley revealed earlier this month that it held 5.5 million shares of BlackRock’s iShares Bitcoin Trust, valued at $190 million. It also invested in Ark 21Shares and Grayscale’s ETFs. This rapid growth in institutional adoption is further highlighted by Bitwise’s Chief Investment Officer, Matt Hougan.

In a recent thread on X (formerly Twitter), Hougan emphasized that Bitcoin ETFs have drawn the fastest-growing inflows of all time, with $17.5 billion ramped up since their launch. This milestone surpasses the previous record held by the Nasdaq-100 QQQs.

Hougan’s analysis challenges the narrative that Bitcoin spot ETFs are primarily driven by retail investors. He noted that institutional interest is not only present but also growing at an unprecedented rate. Moreover, he revealed that Bitcoin ETFs have attracted three times the number of institutional holders within the first two quarters compared to the QQQs during a similar timeframe.