A new statement from Bitwise CIO Matt Hougan states that spot Bitcoin ETFs are gaining traction with institutional investors. Over 500 professional investing firms have already made investments in Bitcoin ETFs, according to a Bitwise article on X. Additionally, the issuer of the BITB ETF stated that there will be an increase of institutional investors exceeding 700.
Institutional Adoption Of The Bitcoin ETF To Maintain Momentum
The Bitwise CIO estimates the number of organizations to approach 700 once the May 15 reporting deadline ends. Additionally, it will bring these institutional players’ total assets under management (AUM) closer to $5 billion. Furthermore, Bitwise outlined three critical conclusions from Hougan’s memo.
First, on Thursday, May 9, 563 professional firms reported possessing $3.5 billion worth of Bitcoin ETFs. These firms are becoming increasingly wealthy. Second, the amount of professional investor ownership in this new ETF is unprecedented; in their first few months of launch, most new ETFs draw far fewer 13F filers.
Third, most of the float is still owned by retail investors, even though professional investors only own 7–10% of all BTC ETF assets. But this might only be the start of more significant institutional allotments.
The CEO of Bitwise, Hunter Horsley, highlighted how attitudes about Bitcoin ownership are changing. Horsley said, “First, they said it’s only crazy internet people that own Bitcoin,” about Hougan’s memo. They went on to say that only retail customers owned Bitcoin.
The Bitwise CEO also praised the increasing institutional uptake of these ETFs. However, he also expects more mistrust from Bitcoin skeptics. Horsley remarked, “Now they see over 500 massive wealth firms, banks, & institutional investors bought Bitcoin in the first 2.5 months of ETFs. I’m curious to hear what they say next.
In spot BTC ETFs, Millennium Management emerges as the largest holder
Millennium Management recently reported its considerable stakes in these ETFs by supporting this trend through its 13F-HR SEC filing. As a result, Millennium Management is currently the biggest Bitcoin ETF holder, having committed over $2 billion to different Bitcoin ETFs.
Significant holdings held by the company include $806.64 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) and $844.18 million in BlackRock’s iShares Bitcoin Trust (IBIT). Furthermore, Millennium Management has contributed $202.02 million to the Grayscale Bitcoin Trust (GBTC).
Furthermore, the firm invested $45 million in the ARK 21Shares’ ARKB ETF and $44,737,805 in Bitwise’s BITB ETF. Approximately 3% of Millennium’s $64 billion fund, or nearly $2 billion, is invested in Bitcoin ETFs. The degree of dedication exhibited by a prominent institutional participant highlights the increasing recognition and incorporation of Bitcoin ETFs in conventional financial markets.
