Institutional Spot Bitcoin ETF Holdings Skyrocket 79% In Q2, What’s Next?

Institutional interest in Bitcoin (BTC) continues to soar, with new data revealing significant growth in holdings of Spot BTC ETFs in the second quarter of 2024. According to Julian Fahrer, Co-Founder of Apollo Sats, 13F filings show a marked increase in Bitcoin ETF positions among institutional investors. Moreover, more institutions are expected to reveal their exposure in these ETFs via 13F filings due next month.

Institutional Influx Into Spot Bitcoin ETF

Fahrer shared this insight on X, noting that 154 entities have submitted the 13F filing to the U.S. SEC. The filings indicate that these 79% institutions have increased their holdings in these ETFs. Whilst, only 12.5% have decreased their Spot Bitcoin ETF exposure.

The financial impact of these movements is considerable. Buyers added a substantial $83.5 million to their holdings. On the other hand, sellers divested only $5.4 million in Spot Bitcoin ETFs. “ETF buyers stacked the Q2 dip,” Fahrer summarized. This emphasizes the bullish sentiment among institutional investors during the recent market downturn.

However, Fahrer cautioned that this analysis is still provisional, as many large entities have yet to file their reports. “Also just to reiterate: this is provisional analysis based on 13F filings so far. The filing deadline is a month away, and most of the largest & influential entities will probably file toward the end,” he added.

While the current data indicates a strong institutional presence, Fahrer highlighted that a significant portion of the inflows might not be reported in the 13F filings. The reason he mentioned was the dominance of retail investors in these ETFs. Moreover, he drew parallels with Q1 figures wherein retail market dominated the Spot Bitcoin ETF inflows.

One of the latest firms to report exposure in these ETFs is True Private Wealth Advisors. The fund manager revealed $1.9 million worth of holdings, according to the latest SEC filing. Majority of the allocation was made toward Grayscale’s GBTC ETF with over $1.3 million invested. In addition, it also allocated $522,093 to Bitwise’s BITB.

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Brian Dixon’s Outlook For ETF Market

Brian Dixon, CEO of Off The Chain Capital, reinforced the long-term bullish outlook for Spot Bitcoin ETFs in a recent CNBC interview. Reflecting on previous predictions, Dixon stated, “I do stand by my statements that I think we’ll see much larger allocations towards the tail end of this year early next year with the Bitcoin ETFs. The reasoning for that, like I’ve noted before, is that the largest investors in the world have very long due diligence timelines.”

In addition, Dixon pointed out that significant institutional investors, such as sovereign wealth funds, pension plans, and endowments, often require 12 to 18 months to complete their due diligence processes before making substantial allocations. He expects this trend to continue, potentially accelerated by recent political developments. “I think with what occurred with Trump over this last weekend is actually maybe going to accelerate the process of digital assets and more allocations to Bitcoin,” Dixon noted.

Looking ahead, Dixon anticipates a similar trajectory for Spot Ethereum ETFs if they receive approval. “I would expect the same thing to happen in regard to the Ethereum ETFs. I think once those will launch, we’ll see an inflow initially, we’ll see a big bump of allocations happening,” he explained.

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